Practical HR Tips, News & Advice. Updated Daily.
If you run a business, you’ve probably encountered arbitration clauses. These contractual provisions require parties to resolve disputes in private proceedings instead of court and are celebrated as a cost-effective alternative to in-court litigation. But arbitration might not always be a beneficial proposition for business disputes. Those who have arbitrated cases know the process features […]
The 2023 Carlton Fields Class Action Survey has revealed a significant increase in the number of labor and employment class action lawsuits and the amount companies are spending to defend those lawsuits. That is sobering news for employers and raises questions about what the class action landscape may look like for employers in the future. Labor & […]
Courts have long favored arbitration as a method of dispute resolution under the Federal Arbitration Act (FAA). In 2018, the U.S. Supreme Court reinforced the policy favoring arbitration agreements in Epic Systems Corp. v. Lewis. The Court ruled that the FAA requires enforcement of arbitration agreements that fall within its scope, including agreements in which […]
The Federal Arbitration Act (FAA) favors the enforcement of arbitration agreements, but employers can’t wait too long to compel arbitration. Courts often apply a contract “waiver” rule if employers sit on their rights too long (meaning the court finds a party waived its right to arbitrate if it failed to start the process soon enough). […]
Employers using agreements that require employees to arbitrate employment law claims should take note of a troubling decision by the U.S. 4th Circuit Court of Appeals (the federal appellate court with jurisdiction over North Carolina).
The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, which Congress passed on February 10, 2022, lets individuals choose whether to arbitrate or take their sexual assault or sexual harassment claims to court.
Nearly four years ago, the U.S. Supreme Court held employers can enforce arbitration agreements that waive an employee’s right to join a class action lawsuit. Since then, many companies have avoided what would be costly class action lawsuits, particularly in the wage and hour context, by requiring individual arbitration with employees. Despite this, there was […]
The Federal Arbitration Act (FAA) enforces certain arbitration agreements involving federal law, including some employment disputes and claims against employers under the Employee Retirement Income Security Act of 1974 (ERISA). But is an arbitration agreement that prohibits an individual from seeking relief provided by federal statute still enforceable? The U.S. 7th Circuit Court of Appeals […]
A federal district court in Massachusetts recently issued a decision that serves as a good reminder to employers to review their policies related to employee drug or alcohol use both on and off duty and ensure they are consistently applied. While the case involved a unionized employer, even nonunion employers should review the decision because […]
Arbitration agreements are basically contracts, and they won’t be enforced absent proof both parties agreed to their terms. When the agreement is ambiguous and the ambiguity was created by the employer, one might expect a court won’t enforce the contract against the employee. But arbitration agreements are favored by some basic legal tenets, so is […]