Tip #1: Consider An Arbitration Agreement—With A Class
Action Waiver
Until recently, there has been much debate about the
enforceability of arbitration agreements containing class action
waivers. Courts disagreed as to whether employers could enforce
these agreements against workers seeking to sue on a class action
basis. The debate is over. In 2018, the Supreme Court settled the
issue. Arbitration agreements with class action waivers are
enforceable to the same extent as other contracts. This means that
a well-crafted and implemented arbitration program can provide
insulation from bet-the-company wage and hour class action
lawsuits.
An employment arbitration program is not right for every
company. To be sure, there are pros and cons to arbitration. With
few exceptions, however, every company with a sizeable workforce
should at least conduct an analysis and make an informed decision
about the usefulness and scope of an arbitration agreement.
