Monday, May 21, 2018

Class Action Waivers in Employment Agreements Upheld by Supreme Court

In the consolidated cases of Epic Systems Corp. v. Lewis, No. 16-285; Ernst & Young LLP et al. v. Morris et al., No. 16-300; and National Labor Relations Board v. Murphy Oil USA, Inc., et al., No. 16-307 (May 21, 2018), the Supreme Court has resolved a conflict amongst the U.S. Federal Circuit Courts, and once again the Ninth Circuit has been overruled. This time SCOTUS confirmed that class action waivers in employee arbitration agreements are enforceable (if properly drafted). The Supreme Court had previously ruled these as enforceable in consumer arbitration agreements in 2011. The favorable ruling for employers had been opposed by the Obama Administration and more recently supported by the Trump Administration.

This ruling is a valuable tool for Nevada employers if properly deployed.