The Supreme Court has weighed in: class and collective action waivers in arbitration agreements are lawful and must be enforced under the Federal Arbitration Act (FAA).
In a case of first impression, the 11th Circuit concluded that filing a written consent – even in a matter that is never certified as a collective action – is sufficient to bestow “party plaintiff” status to a putative opt-in plaintiff.
The FCRA is not a classic employment law, but regulates the procurement and use of background checks by employers. The plaintiffs’ bar has been flooding the courts with class action lawsuits asserting technical violations of the FCRA's requirements.
On June 7, 2017, a plaintiff brought a putative class and collective action for alleged wage and hour law violations. Some claims are based on a DOL overtime rule that was enjoined and never took effect.
As a result of the Supreme Court’s recent decision to address whether class and collective action waivers are lawful in an arbitration agreement, many employers have asked whether similar pending cases will be held in abeyance.
On January 13, 2017, the U.S. Supreme Court granted certiorari in three cases involving the lawfulness of class and collective action waivers in arbitration agreements.
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The Ninth Circuit has held that an arbitration agreement that required employees to bring claims in “separate proceedings”, thereby prohibiting class and collective actions, violated the employees’ right to engage in concerted activity under the NLRA.
The 7th Circuit has found that a company's arbitration agreement, which prohibits employees from participating in “any class, collective or representative proceeding,” violated the employees’ right to engage in concerted activity under the NLRA.
