Supreme Court upholds employers’ right to bar class action suits

The U.S. Supreme Court issued a decision near the end of its term upholding the right of employers to bar class action suits in predispute arbitration agreements. The issue was whether an arbitration agreement, otherwise legally binding, was invalid under the National Labor Relations Act because it prevented class action suits.

Employers are now free to include class action bans in arbitration agreements with employees. Each dispute must then be separately arbitrated. This severely limits the ability of plaintiff class action lawyers to achieve verdicts or settlements generating high dollar fees in employment class action matters.

Thanks to Kindred-line member Michael Charapp, Esq., Charapp, & Weiss, LLP, for providing this information.