This
series examines whether an employee arbitration program
can help minimize legal risks from COVID-19 and beyond.
For many employers, an important reason for rolling out
arbitration is a desire to avoid class and collective
actions. In this article, we consider whether arbitration
agreements live up to their billing in this regard. As
explained below, while they aren't fool-proof, for many
employers and many employment claims, arbitration agreements do in
fact significantly reduce the risk of class or collective
actions.
First, we present the general rule, which is good news for
employers. Then we explain some of the exceptions, risks, and
pitfalls that can land an employer in a class or collective
action.
