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Courts have long favored arbitration as a method of dispute resolution under the Federal Arbitration Act (FAA). In 2018, the U.S. Supreme Court reinforced the policy favoring arbitration agreements in Epic Systems Corp. v. Lewis. The Court ruled that the FAA requires enforcement of arbitration agreements that fall within its scope, including agreements in which […]
The Federal Arbitration Act (FAA) favors the enforcement of arbitration agreements, but employers can’t wait too long to compel arbitration. Courts often apply a contract “waiver” rule if employers sit on their rights too long (meaning the court finds a party waived its right to arbitrate if it failed to start the process soon enough). […]
Employers using agreements that require employees to arbitrate employment law claims should take note of a troubling decision by the U.S. 4th Circuit Court of Appeals (the federal appellate court with jurisdiction over North Carolina).
The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, which Congress passed on February 10, 2022, lets individuals choose whether to arbitrate or take their sexual assault or sexual harassment claims to court.
Nearly four years ago, the U.S. Supreme Court held employers can enforce arbitration agreements that waive an employee’s right to join a class action lawsuit. Since then, many companies have avoided what would be costly class action lawsuits, particularly in the wage and hour context, by requiring individual arbitration with employees. Despite this, there was […]
The Federal Arbitration Act (FAA) enforces certain arbitration agreements involving federal law, including some employment disputes and claims against employers under the Employee Retirement Income Security Act of 1974 (ERISA). But is an arbitration agreement that prohibits an individual from seeking relief provided by federal statute still enforceable? The U.S. 7th Circuit Court of Appeals […]
A federal district court in Massachusetts recently issued a decision that serves as a good reminder to employers to review their policies related to employee drug or alcohol use both on and off duty and ensure they are consistently applied. While the case involved a unionized employer, even nonunion employers should review the decision because […]
Arbitration agreements are basically contracts, and they won’t be enforced absent proof both parties agreed to their terms. When the agreement is ambiguous and the ambiguity was created by the employer, one might expect a court won’t enforce the contract against the employee. But arbitration agreements are favored by some basic legal tenets, so is […]
When launching an arbitration agreement, you must understand the pros and cons of requiring your employees to sign one as well as which workers should be covered and the hurdles of enforcement. Depending on the potential value of the claim to be arbitrated, the filing fee could result in a five-figure charge just to initiate […]
The National Labor Relations Board’s (NLRB) August 14 decision on employers’ use of mandatory arbitration agreements provides clarity and helps companies conduct business “without having to walk on eggshells,” according to the lead attorney arguing the employer’s case before the Board.