Legal Alert: US Supreme Court Rules Arbitration Agreements Barring Class Actions Are Enforceable

Posted in Legal Alerts on May 29, 2018

On May 21, 2018, the U.S. Supreme Court issued a significant decision in Epic Systems Corp. v. Lewis, determining whether or not employment contracts can legally bar employees from collective suits such as class actions. In a 5-4 decision, the Court ruled that arbitration agreements requiring individual arbitration are enforceable under the Federal Arbitration Act.

The case is of significant interest to the tens of millions of American workers who are employed under employment contracts that require individual arbitration over collective actions. The ruling makes it clear that companies can use arbitration clauses and class waivers in employment contracts to prohibit workers from banding together to take legal action over workplace issues.

For companies who have arbitration provisions in any agreement or contract with their clients, employees, vendors and/or customers, we suggest considering whether an arbitration provision requiring individual arbitration and precluding class actions could be of benefit to you. For more information about this important Supreme Court decision, please contact attorney Dale L. Friedman at dfriedman@conroysimberg.com or (954) 518-1252.

Click here to read the full U.S. Supreme Court opinion.