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Managing the Modern Workplace
V&E International Labor & Employment Resources

  • 07
  • June
  • 2018

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All Arbitration, All the Time: Court Agrees to Hear Case on Whether an Arbitration Clause Allows Class Arbitration When the Clause Is Silent on It

As we discussed in a previous post, the Supreme Court recently ruled that employers may enforce class-waiver arbitration clauses in employment agreements and require an employee to arbitrate his claims in individual, as opposed to collective, arbitration proceedings. Hot on the heels of this recent important decision, the Court agreed to hear a case from the Ninth Circuit which addresses a related issue: whether arbitration clauses that are silent about class arbitration can nevertheless be interpreted to permit class arbitration. This may not seem consequential since many companies moving forward will opt to use class action waivers in employment agreements following the Supreme Court’s recent decision, but standard arbitration clauses are often silent on class arbitration, and many of these clauses may remain in effect for years to come. As such, the Supreme Court’s decision on this issue could have substantial implications for employers that use standard arbitration clauses in employment agreements. 

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Thomas H. Wilson

Thomas H. Wilson Partner

Christopher V. Bacon

Christopher V. Bacon Counsel

Sean Becker

Sean Becker Partner

Stephen M. Jacobson

Stephen M. Jacobson Partner

Martin C. Luff

Martin Luff Counsel

Lawrence S. Elbaum Partner