Supreme Court Upholds Agreements Preventing Employee Class-Action Suits

(May, 2018) On May 21, the Supreme Court upheld the legality of clauses in employment contracts forcing employees to settle disputes with their employer individually with a third-party arbitrator. The Court said that arbitration agreements, which bar employees from joining together in arbitration or a class-action lawsuit to settle disputes over wages and working conditions, are enforceable under the Federal Arbitration Act. This decision reverses a previous ruling by the National Labor Relations Board.