Decision Upholds Class Action Waivers In Arbitration Clauses, Resolves Circuit Split

Mary Goodrich Nix is a Partner in Holland & Knight's Dallas office

Sara A Schretenthaler is an Associate in Holland & Knight's Dallas office

The U.S. Supreme Court issued a long-awaited decision in Epic Systems Corp. v. Lewis on May 21, 2018, holding that class action waivers in arbitration provisions are enforceable under the Federal Arbitration Act. The court rejected the National Labor Relations Board's position that class action waivers violate federal labor laws. Before the Supreme Court released its opinion, a circuit split had prevailed, with the U.S. Courts of Appeal for the Seventh, Ninth and Sixth Circuits ruling that mandatory class-waiver arbitration provisions were not enforceable, and the Fifth, Second and Eighth Circuits finding that such provisions were enforceable.