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ARTICLE · 24 JUNE 2013

Says "Wait a Minute!" To Using Arbitration To Prevent Class Action Claims

In the past couple of years, the United States Supreme Court has issued several arbitration decisions that many have thought might spell the roadmap for avoiding the wave of class action litigation brought against employers.

United StatesEmployment and HR

In the past couple of years, the United States Supreme Court has issued several arbitration decisions that many have thought might spell the roadmap for avoiding the wave of class action litigation brought against employers. Specifically, in Stolt-Nielsen v. Animal Feeds International, the Court ruled that arbitration could not be conducted on a class action basis unless the arbitration agreement specifically allowed for class claims. In AT&T Mobility v. Concepcion, the Court further stated that states generally cannot impose non-contract restrictions on the enforcement of arbitration agreements because the Federal Arbitration Act creates a national policy favoring enforcement. In response to these decisions, many have suggested that employers can prevent class action claims by having employees sign arbitration agreements requiring the resolution of disputes through arbitration and require such arbitration proceedings to occur only on an individual basis. Slow down the

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