Showing 2 posts in Class Waiver.

SCOTUS Green Lights Class Action Waivers in Major Win for Employers

The United States Supreme Court ruled earlier this week that employees must submit claims to arbitration on an individualized basis when their employment agreements require it, even when those claims could be brought as class or collective action under federal legislation such as the Fair Labor Standards Act. Writing for the majority, Justice Neil Gorsuch held that parties to an arbitration agreement are bound by their agreement, as the Federal Arbitration Act envisioned. The Court cited the long history of supporting private arbitration agreements as an efficient and cost-effective means of handling disputes between parties, including parties to an employment agreement who have a dispute over wages. More ›

Arbitration Agreement Containing Class Waiver Enforceable in FLSA Case

A residential care facility administrator entered into an arbitration agreement at the time she was hired which provided that she would submit any and all claims relating to her employment to arbitration. The agreement also contained a class waiver. Despite the foregoing, the administrator filed an action on behalf of herself and other current and former employees claiming that they were misclassified as “exempt” employees, but should have been entitled to overtime pay under the Fair Labor Standards Act (FLSA) because they regularly worked over forty hours per week. More ›