Epic Fail: Class Action Waivers Take A Hit

For the first time, a federal appeals court has dealt a serious blow to class and collective action waivers in arbitration agreements. In Jacob Lewis v. Epic Systems Corporation, the 7th Circuit Court of Appeals held that a mandatory arbitration agreement prohibiting employees from bringing claims against their employer on a class or collective basis violates the National Labor Relations Act (NLRA). While the decision itself only directly impacts employers in Illinois, Indiana, and Wisconsin, the court's reasoning could be adopted by other circuits, or perhaps by the U.S. Supreme Court, causing even more headaches for employers around the country.

Popularity of Mandatory Arbitration Agreements with Class/Collective Action Waivers