General Counsel, P.C.

  • Practice Areas
    • Business Law
      • Business Breakups in Virginia
      • Minority Shareholder Protections
      • Emerging Companies
      • Entity Formation
      • Foreign Companies Entering U.S. Market
      • Real Estate and Leases
      • Starting a Business, Licensing & Compliance
      • Registered Agent Services
      • Succession Planning for Business Owners
      • Tax Law Matters
      • Charitable Solicitation Practice Group
      • Intellectual Property
        • Trade Secrets
        • Copyright
        • Trademark
    • Employment Law
      • Employment Documentation
        • Building Your Cornerstone
        • Employee Document Vault
        • Employee Handbook Tuneup Services
        • Guidelines for Hiring or Firing Employees
        • Separation Agreements
      • Drug Testing
        • Drug Testing Your Workforce – Best Practices
        • Laws Affecting Drug Testing Policies
      • Regulatory Issues
        • VA, MD, DC, Rights & Obligations
        • Age Discrimination
        • Americans with Disabilities Act
        • At-Will Employment
        • Fair Labor Standards Act
        • Family Medical Leave Act
        • Pregnancy Discrimination Act
        • Title VII
      • Non-Competition Agreements
        • District of Columbia
        • Maryland
        • Virginia
      • For Employers of Uniformed Services Members
      • Employer Considerations For Government Contractors
      • For Non-Profits
    • Family Law
      • Divorce
        • Grounds for Divorce
          • Fourth Level Menu Sample
        • High Net Divorce
        • Same Sex Divorce
        • Military Divorce
        • Uncontested Divorce
        • Litigation vs. Alternative Dispute Resolution in Divorce
        • Post-Divorce Enforcement and Appeals
        • Alimony and Spousal Support
        • Child Custody
        • Child Support
        • Filing for Divorce in Virginia
        • Divorce Security Clearance
      • Property Division
      • Alimony and Spousal Support
      • Child Support
      • Child Custody and Visitation
      • Marital Agreements
      • International Family Law
      • Domestic Violence and Protective Orders
      • Co-Parenting in Virginia
    • Government Contracts
      • Bid Protests
      • Government Contract Claims and Appeals
      • Getting Government Contracts: Small Business Certification Services
        • 8(a) Small Business
        • HUBZone Small Business
        • SDVOSB Program
        • Veteran-Owned Small Business
        • Women-Owned Small Business
    • Litigation
      • Arbitration, Mediation & Alternative Dispute Resolution Attorneys
      • Commercial & Business Litigation
      • Defamation
      • Employment Disputes
      • Government Contracting Disputes
      • Intellectual Property Disputes
      • Local Counsel
      • Pre-Litigation
    • Estate Planning
      • Estate Planning FAQs
      • Trusts
      • Wills
      • Families With Children
      • Business Succession Planning
      • Asset Protection Planning
      • Celebrity Estate Planning Mistakes
      • Legal Business Contingency Plans
      • Become a Referral Partner
    • Probate Administration
      • Probate is Complex – FAQ and Answers
      • Trust & Estate Litigation
  • About Us
    • Overview
    • Biographies
      • Andrew “Andy” Baxter
      • Matthew Brennan
      • Heba K. Carter
      • Joanna Foard
      • Erika Gnazzo
      • Merritt Green
      • Elizabeth Hart
      • David Kaye
      • Craig Lawless
      • David Proano
      • Evan St. John
    • How We Help
  • Resources
    • Practical Counsel Blog
    • Bid Protest Weekly
    • VetWorking
    • COVID Compliance Plans
    • Virginia COVID Workplace Safety and Health Standards
    • Video Library
    • Webinars
    • Quotes in The News
    • GCPC First Generation Law Student Scholarship
  • Testimonials
  • Contact
  • Make Payments
703-556-0411

Employment Law Update: Supreme Court Says Arbitration Requirements in Employment Agreements are Enforceable

Monday, 04 June 2018 / Published in Business, Corporate & Tax, Litigation

Employment Law Update: Supreme Court Says Arbitration Requirements in Employment Agreements are Enforceable

A recent U.S. Supreme Court case, Epic Systems Corporation v. Lewis upheld employers’ use of class-action waivers in arbitration agreements. No. 16-285, 2018 WL 2292444, at *1 (U.S. May 21, 2018). Based on this ruling, employees that have signed such agreements are no longer able to join together to sue employers and instead must use arbitration to individually resolve any issues. This decision will likely make it harder for employees to sue employers now that collective bargaining is off the table. Class actions offered employees a chance to seek damages from employers when individual lawsuits were too costly, potential damages were too low, or when employees feared retaliation if they sued employers individually.

Epic Systems Corp. consolidated three separate cases involving three different employers: Epic Systems, Ernst & Young, and Murphy Oil. In each of these cases, an employer and employee entered into a contract providing for individualized arbitration proceedings to resolve employment disputes between the parties. However, each employee later sought to litigate Fair Labor Standards Act and related state law claims through class or collective actions in federal court.

The Arbitration Act requires courts to enforce agreements to arbitrate, including the terms of arbitration agreed to by the parties. The Arbitration Act also includes a savings clause, which allows courts to refuse to enforce arbitration agreements “upon such grounds as exist at law or in equity for the revocation of any contract.” The employees here argued that the savings clause applied to the waivers prohibiting class actions, creating a “ground” upon which the court may refuse to enforce the arbitration agreements. The employees relied on the National Labor Relations Board’s interpretation that the National Labor Relations Act overrides the Arbitration Act. However, the court found that the savings clause was not applicable to the employees’ arbitration agreements.

The Supreme Court noted where two acts discuss the same issue “Congress will specifically address preexisting law before suspending the law’s normal operations in a later statute.” The court stressed that “the absence of any specific statutory discussion of arbitration or class actions is an important and telling clue that Congress has not displaced the Arbitration Act.” The court summed up by stating: “Congress has instructed that arbitration agreements like those before us must be enforced as written. While Congress is of course always free to amend this judgment, we see nothing suggesting it did so in the NLRA.”

The court’s finding that collective bargaining law does not supersede the federal law that established the arbitration process and that the class-action waivers in employment contracts are valid, may lead more employers to include such provisions in their employment agreements. Employers are likely to see the court’s decision as a big win, while employees may second-guess decisions to initiate actions against employers, knowing arbitration is the only option.

Call General Counsel PC Today

Whether you’re an employer or employee wondering how this decision might affect you, attorneys at General Counsel PC can help. Our attorneys are specialized in labor and employment law and have experience working with business owners and individuals across Virginia, specifically in Fairfax County, Arlington, Loudoun County, and Prince William. Call General Counsel PC at 703-556-0411 today to see how we can help you.

  • Tweet
Tagged under: Arbitration Requirements, Arbitration Waivers

TOP ARTICLE CATEGORIES

  • BUSINESS

  • COVID-19

  • LABOR & EMPLOYMENT

  • FAMILY LAW

  • GOVERNMENT CONTRACTS

  • LITIGATION

Subscribe to Blogs and Updates

Address:

6849 Old Dominion Dr #220
McLean, VA 22101

Hours of Operation:

Mon – Fri, 8AM – 5PM

Phone Number:

+1 703-556-0411


  • HOME
  • ABOUT US
  • PRIVACY POLICY
  • DISCLAIMER
  • SITEMAP
  • CONTACT US
  • MAKE A PAYMENT

General Counsel, P.C. BBB Business Review

© 2023 General Counsel, P.C. | Website Design & Development by High Level Thinkers

TOP