Supreme Court Says Employers Can Require Workers to Sign Away Class Action Rights

• The U.S. Supreme Court handed employers a significant legal victory on Monday, striking a blow to labor rights groups.
• The court ruled that employers can legally require workers to sign away their rights to pursue class action claims.
• The court rejected the National Labor Relations Board’s argument that class action waivers violate federal labor law.
• The ruling supports employers’ right to include arbitration clauses in employment contracts that prohibit workers from acting collectively to take legal action over workplace issues.

What Both Sides Argued

• The decision was split five to four, with conservative justices in the majority and liberal justices dissenting.
• The majority concluded that a federal law favoring arbitration applied to the issue, noting that law’s intent to displace expensive and complex litigation.
• In her dissent, Justice Ruth Bader Ginsburg defended the importance of class action claims:

By joining hands in litigation, workers can spread the costs of litigation and reduce the risk of employer retaliation… Employers, aware that employees will be disinclined to pursue small-value claims when confined to proceeding one-by-one, will no doubt perceive that the cost-benefit balance of underpaying workers tips heavily in favor of skirting legal obligations.

• Ginsburg called on Congress to address the issue.

What do you think?

Should Congress act to allow workers to band together to pursue workplace claims? Is binding arbitration an important tool for companies to avoid complicated, costly litigation? Hit Take Action, then share your thoughts below.

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--Sara E. Murphy