Companies can’t force workers to waive their ability to bring class actions, the U.S. Court of Appeals for the Seventh Circuit ruled last week. The ruling creates a split between the federal appellate courts and could invite the U.S. Supreme Court to weigh in on the hot issue of class action waivers in employment agreements.
In a ruling issued on May 26, the Seventh Circuit ruled that employees of Epic Systems Corp. can proceed with a wage-and-hour lawsuit against the company, rejecting its argument that employees had relinquished their ability to sue collectively when they signed an employment agreement containing a class action waiver. The court ruled that such agreements violate Section 7 of the National Labor Relations Act, which protects concerted activity by employees.
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