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U.S. Supreme Court Re-Affirms Class Action Waivers in Arbitration Agreements

Recently, the U.S. Supreme Court issued yet another decision upholding class action waivers contained in arbitration agreements. The court held that the waivers are enforceable under the Federal Arbitration Act ("FAA") and cannot be invalidated on state law grounds inapplicable to any other contract.

Practical Effects:

The recent U.S. Supreme Court position is encouraging for employers and provides some basis for concerns for employees. This decision further paves the pathway for enforceability of arbitration agreements and class action waivers under the FAA. Although arbitration agreements and class action waivers may not necessarily be suitable in all circumstances, they can provide significant protection to employers and companies who engage independent contractors. We will ensure that your provisions are properly drafted to fend off frivolous lawsuits.

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