Home › HR Legal & Compliance › U.S. SUPREME COURT DECISION

U.S. SUPREME COURT DECISION

Posted on May 23, 2018 by Trinity HR

DISCLAIMER

This document has been prepared by Trinity HR Consulting, Inc. (“Trinity”) solely for use as a general source of information.  As such, it is not intended to take the place of obtaining advice from legal and/or tax counsel.  Trinity strongly urges seeking legal and/or tax counsel on this subject matter prior to taking any related actions or making any related decisions.

U.S. Supreme Court Upholds Individual Arbitration Agreements

BACKGROUND

In 2012, the National Labor Relations Board (NLRB) held these types of agreements were prohibited and unenforceable. Since then, courts have either agreed with or deferred to the Board and struck down the enforceability of these individual arbitration provisions.

  • The case involved the Court’s ruling on whether employment disputes could be resolved in individual arbitrations rather than in court.

THE ISSUE

The issue before the Court was whether an agreement that requires an employer and an employee to resolve employment-related disputes through individual arbitration, and waive class and collective proceedings, is enforceable under the Federal Arbitration Act (FAA) (notwithstanding the provisions of the National Labor Relations Act [NLRA] and under the Fair Labor Standards Act [FLSA].

  • Arbitration clauses in employment contracts are a relatively recent innovation, but they have become quite common.  It’s estimated that there are more than 25 million employment agreements in existence.
  • Today 54 percent of non-unionized employers utilize arbitration clauses. It is estimated that there

DECISION

Yesterday (May 21st, 2018), the Supreme Court of the United States (SCOTUS) issued a decision granting significant rights to employers seeking to limit liability in class action cases. In a 5-4 decision, the Court upheld the use of class action waivers in individual employment agreements. This means employees who sign agreements binding them to bring individual arbitration actions cannot bring or be a party to class actions in litigation, including in class action wage claims under the Fair Labor Standards Act (FLSA).

  • In issuing its ruling, the SCOTUS  reversed the Board’s mandate and rendered the  individual arbitration provisions enforceable.
  • The decision also underscored the importance of the 2016 presidential election’s impact on the judiciary. The Obama administration and the National Labor Relations Board had backed workers in the cases, but after President Trump was elected, the Justice Department threw its support to the employers.

WHAT THE DECISION MEANS FOR EMPLOYERS

This means employers are now free to place a provision in an employment and/or severance agreement waiving the right of the employee to engage in any class-action against the employer and requiring the employee instead to engage in individual arbitration to resolve any claims against the employer.
Aggressive acidic bile and pancreatic juice are highly their site viagra samples alkaline fluids with pH close to 8.0.

  • This decision is a huge win for employers who utilize individual arbitration agreements with their employees and clears the way for continued use of said agreements.

HOW TRINITY CAN HELP YOU

Trinity can:

  • Review your existing:
    • Employment Agreements
    • Employee Handbook and Policies
  • Conduct management and executive searches to find individuals with the specific experience and expertise you need, as well as their being compatible with your culture.
  • Create employment agreements protecting your company’s interest by containing:
    • Restrictive Covenants (such as a Non-Compete)
    • An arbitration clause in line with this new Supreme Court ruling

For more information:

You have HR questions…Trinity has answers!

Posted in HR Legal & Compliance