Today, the Ninth Circuit Court of Appeals decided Morris v E&Y, which rules that an employer violates the National Labor Relations Act by requiring its employees to agree to arbitrate employment disputes individually, as opposed to in the form of a class or collective action.
Specifically, the Ninth Circuit ruled:
In this case, we consider whether an employer violates the National Labor Relations Act by requiring employees to sign an agreement precluding them from bringing, in any forum, a concerted legal claim regarding wages, hours, and terms and conditions of employment. We conclude that it does, and vacate the order of the district court compelling individual arbitration.
The current circuit split breaks down as follows:
- Fifth Circuit – Class action waiver is enforceable and does not violate the NLRA
- Seventh Circuit – Class action waiver is unenforceable because it violates the NLRA
- Ninth Circuit – Class action waiver is unenforceable because it violates the NLRA
If you would like to discuss the legality of your company’s arbitration agreement and class waiver, please feel free to email or call. email@example.com. (470) 839-9300.