“Ernst & Young LLP cannot require its employees to give up their rights to pursue work-related claims together, a federal appeals court ruled on Monday, giving a major boost to the U.S. National Labor Relations Board’s campaign against so-called class action waivers.
Companies have increasingly included provisions in employment contracts forcing workers to arbitrate claims individually as a way to avoid the cost of litigating class actions.
The NLRB has struck down such requirements imposed by dozens of companies, including American Express Co, Citigroup Inc and Domino’s Pizza Inc.
With its 2-1 ruling, the 9th U.S. Circuit Court of Appeals in San Francisco became the second appellate court to sign off on the NLRB’s position that federal labor law prohibits workers’ arbitration agreements from including class action waivers.
But two appellate courts previously rejected the NLRB’s view, making it likely that the U.S. Supreme will eventually rule on the enforceability of such waivers.”
If ever there were a set of cases destined for the Supreme Court, these cases are it! Exciting turn of events in arbitration.