Accessibility Tools

Skip to main content

The Latest      —

U.S. Supreme Court Approves Class Action Waivers

Written on .


Yesterday, by a 5-4 decision along ideological lines, the U.S. Supreme Court held that employment contracts that contain arbitration clauses and class action waivers are enforceable. This ruling was not terribly surprising in light of the makeup of the Court, and it is considered a big win for employers.

What does this ruling mean? It means that employers can enforce written agreements with employees that require the employees to take any claims against the employer to arbitration (rather than into court) and that prohibit employees from bringing their claims as part of a class action.

Arbitration is generally faster and less expensive than court cases. Arbitration decisions are also harder to appeal than court decisions. Many employers would prefer to have employment claims heard by a single arbitrator than by a judge and jury.

The ability to enforce waivers of class action claims is likely to have major impact on employee wage and hour claims. Plaintiffs' attorneys have embraced wage and hour collective actions as a way to get the most "bang for their buck." In those collective actions, the individual members of the collective group often have to do little more than to sign an opt-in form to participate and eventually get a piece of a settlement or judgment. Requiring each individual to go to arbitration on his/her claim is likely to reduce the number of folks who pursue their claims.

Does your company need an arbitration agreement that contains a class action waiver? The attorneys at Wimberly Lawson can tailor one to the needs of your business. You can contact any of our attorneys at (404) 365-0900.


Kathleen J. Jennings
Former Principal

Kathleen J. Jennings is a former principal in the Atlanta office of Wimberly, Lawson, Steckel, Schneider, & Stine, P.C. She defends employers in employment matters, such as sexual harassment, discrimination, Wage and Hour, OSHA, restrictive covenants, and other employment litigation and provides training and counseling to employers in employment matters.

Related Content

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.

Recent Content

end of words, pavement
The Trump Administration has acted to terminate TPS status for several countries.  Of course, litigation has followed each notice of termin…
we are hiring sign
The Economist magazine reports that job interviews are “the worst way to select people, except for all the others.”  One of the more encour…
fighting rams
Of primary importance is that the best avoidance is to recognize the early warning signs.  In other words, at the beginning of a confrontat…
shutdown, washington
A good amount of publicity has come out recently about two major closings that employers blame on their unions.  In the most recent, at the…
gavel
In December of 2025, an Oregon federal judge refused Union Pacific’s effort to set aside a $27 million verdict in a suit from the worker al…
hello
Discrimination rules applicable to national origin is a priority for the current chairperson of  the Equal Employment Opportunity Commissio…