Accessibility Tools

Skip to main content

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

chaotic light lines
On July 10, 2026, E-Verify notified employers that work authorization is extended temporarily through July 24, 2026, for workers from the f…
connected spheres
The U.S. Department of Labor (DOL) announced on April 22, 2026, a new proposed rule clarifying when multiple employers are jointly liable f…
plaintiff sign
The Federal Arbitration Act (FAA) encourages the use and enforcement of arbitration agreements, although the Act contains an exception for…
3
On April 13, 2026, President Trump nominated James Macy to fill the third vacant Republican seat on the National Labor Relations Board (NLR…
deception
An employer official named in a graphic sexual harassment suit brought a counter-claim against her accuser for defamation, calling his alle…
pointing to computer
No personnel issues have been debated longer and more thoroughly than that of the utility of performance reviews.  Some argue that such rev…