In a significant win for employers, the United States Supreme Court has issued a landmark decision upholding the use of class action waivers in employment arbitration agreements. This ruling permits employers across the country to enforce individual arbitration agreements with employees, even where the agreement requires an employee to pursue legal claims on an individualized, rather than class or collective, basis.
Previously, northwest employers and those in other states within the Ninth Circuit (which includes Alaska, Arizona, California, Guam, Hawaii, Idaho, Montana, Nevada, the Northern Mariana Islands, Oregon, and Washington) were prohibited from requiring employees to agree to mandatory arbitration agreements that waived class actions. Now, employers across the country can enforce such agreements.
Read here for more about the Court’s important decision and our takeaways for employers.