In its Epic Systems Corp. v. Lewis decision earlier this year, the U.S. Supreme Court held that arbitration agreements containing class action waivers are enforceable as written, freeing employers to include such a provision in their arbitration agreements. The Epic Systems ruling thus added to the growing body of Supreme Court case law upholding arbitration – including employment arbitration – as an alternative to formal litigation.
At the same time, and despite the fact that the general validity of binding arbitration as a legitimate means of resolving employment disputes is now well-settled, individual arbitration agreements remain vulnerable to challenge on other grounds, most commonly whether the agreement is valid under state contract law. In addition, there are now statutory restrictions on mandatory arbitration, including the so-called “Franken Amendment” barring certain Defense Department contractors from requiring arbitration of sexual harassment claims, and a handful of states that have enacted similar bans.
NT Lakis attorneys have prepared a guide that looks at a number of recent court decisions illustrating how challenges to arbitration can arise, and offers some tips on how to avoid them. Please note that it is not intended to serve as legal advice. For questions regarding specific issues, please confer with legal counsel.
Members of the Center for Workplace Compliance (CWC) can read more here.