May 01, 2014

The Supreme Court Speaks on Class Action Waivers in Arbitration Agreements

Alyesha A. Dotson

Earlier this year, in the Oxford Health Plans LLC v. Sutter and American Express v. Italian Colors Restaurant decisions, the Supreme Court did a great deal to clarify the validity of arbitrations agreements containing class and collective action waivers. It renounced any such actions. In sum, employers who want to avoid class and collective actions in lieu of arbitration should have employees expressly waive that option in an arbitration agreement. By doing so, employers can do away with the uncertainty of an arbitrator’s interpretation of the agreement and avoid class proceedings.

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