During the 2017-2018 term, the U.S. Supreme Court issued several rulings that will have far-reaching implications for employers. This month’s column reviews two of those key decisions. The first addresses whether companies may use class action waivers in employment arbitration agreements to restrict workers from taking joint legal action over workplace issues. The second resolves whether the anti-retaliation provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) protects employees who report potential securities law violations internally but not to the Securities and Exchange Commission (SEC).

Class Waivers

In a monumental decision, the court in Epic Systems v. Lewis, 137 S.Ct. 809 (2017), resolved a federal appellate court split and upheld the enforceability of employment arbitration agreements containing class and collective action waivers. In a 5-4 ruling, the court held the Federal Arbitration Act (FAA) mandates the enforcement of arbitration agreements and the right to pursue class or collective relief is not protected concerted activity under Section 7 of the National Labor Relations Act (NLRA).

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