Big Business Urges Justices to Uphold Bans on Employee Class Actions
Big-business advocates are lining up with the Trump administration's new position in the U.S. Supreme Court that workplace arbitration agreements banning class actions do not violate federal labor law.
June 21, 2017 at 02:51 PM
15 minute read
Big-business advocates are lining up with the Trump administration's new position in the U.S. Supreme Court that workplace arbitration agreements banning class actions do not violate federal labor law.
The organizations, including the U.S. Chamber of Commerce and the Retail Litigation Center, submitted friend-of-the-court briefs after acting Solicitor General Jeffrey Wall notified the court on June 16 that President Donald Trump's Justice Department was taking a different position than the Obama administration.
The justices next term will hear arguments in a trio of disputes that will be among the most closely watched business cases. More than 70 cases, representing major U.S. companies, were filed in the federal appeals courts. Appeals courts were divided in their rulings.
The three cases in the Supreme Court are: National Labor Relations Board v. Murphy Oil USA (from the U.S. Court of Appeals for the Fifth Circuit); Epic Systems v. Lewis (Seventh Circuit), and Ernst & Young v. Morris (Ninth Circuit). The high court will decide whether arbitration agreements are enforceable under the Federal Arbitration Act or whether they violate the National Labor Relations Act.
Most of the business groups filing amicus briefs are represented by veteran Supreme Court advocates. They include: Jones Day's Beth Heifetz for The Employers Group; Goodwin Procter's William Jay for The Business Roundtable; Mayer Brown's Andrew Pincus for the U.S. Chamber of Commerce; Jenner & Block's Adam Unikowsky for the Retail Litigation Center; and the Washington Legal Foundation's Richard Samp.
In the U.S. Chamber's brief, Pincus, among other arguments, contends the justices have “made clear” that a statute must expressly mention arbitration in order to displace the Federal Arbitration Act. “The NLRA says nothing about arbitration. Indeed, Section 7 does not mention class actions or joint litigation—and its general reference to 'other concerted activities' is at the very most ambiguous about whether such activities are protected, which is insufficient to overcome the FAA,” Pincus wrote in the brief.
Jay, in his brief for The Business Roundtable, said a decision that says class action waivers violate the labor law “would force employers to undergo 'arbitration' that is bereft of the benefits of arbitration, shorn of the efficiency and cost savings that make arbitration favored in the first place. Nothing in the collective bargaining provisions of the NLRA compels such a result.”
Friend-of-the-court briefs supporting employees in the three cases are not yet due.
The question before the justices arose from a 2012 ruling by the NLRB in D.R. Horton. That decision said agreements requiring employees to use individual arbitration for all work-related disputes interfered with employees' right to engage in “other concerted activities,” including class and collective actions. The board said that when such an agreement violates the NLRA, the FAA does not require its enforcement.
Last fall, Deputy Solicitor Edwin Kneedler filed a petition in the Supreme Court on behalf of the NLRB, which had lost in the Fifth Circuit. “The board, which is charged with enforcing the NLRA, has reasonably concluded that such agreements are unlawful under that act, because they would deprive employees of their statutory right to engage in 'concerted activities' in pursuit of their 'mutual aid or protection,'” Kneedler wrote.
The Trump administration's amicus brief this month announced the government's changed position. Wall, the acting solicitor, told the high court: “We do not believe that the board in its prior unfair-labor-practice proceedings, or the government's certiorari petition in Murphy Oil, gave adequate weight to the congressional policy favoring enforcement of arbitration agreements that is reflected in the FAA.”
The NLRB is likely now to look in-house for counsel to defend its position unless the board's composition changes and it repudiates that position between now and the Aug. 9 deadline for filing its brief on the merits.
Copyright National Law Journal. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllApple Files Appeal to DC Circuit Aiming to Intervene in Google Search Monopoly Case
3 minute readDC Circuit Revives Firefighters' Religious Freedom Litigation in Facial Hair Policy Row
3 minute readJudges Split Over Whether Indigent Prisoners Bringing Suit Must Each Pay Filing Fee
4th Circuit Upholds Virginia Law Restricting Online Court Records Access
3 minute readTrending Stories
- 1Uber Files RICO Suit Against Plaintiff-Side Firms Alleging Fraudulent Injury Claims
- 2The Law Firm Disrupted: Scrutinizing the Elephant More Than the Mouse
- 3Inherent Diminished Value Damages Unavailable to 3rd-Party Claimants, Court Says
- 4Pa. Defense Firm Sued by Client Over Ex-Eagles Player's $43.5M Med Mal Win
- 5Losses Mount at Morris Manning, but Departing Ex-Chair Stays Bullish About His Old Firm's Future
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250