Supreme Court Hands Down Several Major Rulings

(July, 2018) The US Supreme Court recently handed down three decisions with significant implications for business.

In the Janus case, the Court held that public sector unions cannot mandate the collection of dues or fees unless the employee affirmatively consents to pay. This overturns a 1977 Supreme Court case, and public-sector unions are almost certainly going to lose membership and dues revenue because of this decision.

In a second case, 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.

Additionally, the U.S. Supreme Court handed down a major ruling that overturns prior decisions which limited the ability of states to collect sales tax on certain out-of-state internet purchases. Currently, businesses that ship a product to another state where it does not have a physical presence are not required to collect that state’s tax. The new ruling allows states to collect sales taxes from most online retailers. TCATA Members can read an analysis of this decision developed by the SBLC.