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Supreme Court Rules Class Action Waivers in Employment Arbitration Agreements Valid

By Jeffrey Schwartz and Daniel D. Schudroff
  • May 21, 2018

Class action waivers in employment arbitration agreements do not violate federal law, the U.S. Supreme Court has ruled in a much-anticipated decision in three critical cases. Epic Systems Corp. v. Lewis, No. 16-285; Ernst & Young LLP et al. v. Morris et al., No. 16-300; National Labor Relations Board v. Murphy Oil USA, Inc., et al., No. 16-307 (May 21, 2018).

The Supreme Court’s decision resolves the circuit split on whether class or collective action waivers contained in employment arbitration agreements violate the National Labor Relations Act (NLRA). They do not, the Court ruled in a 5-4 decision. Justice Neil Gorsuch wrote for the majority of the Court. Justice Ruth Bader Ginsburg dissented, describing the majority holding as “egregiously wrong.”

Jackson Lewis has represented Murphy Oil since the inception of the company’s case and, at the certiorari stage, Jackson Lewis attorneys Jeffrey Schwartz, Daniel Schudroff, and Collin O’Connor Udell filed the brief for Respondent Murphy Oil in support of granting the petition for a writ of certiorari, an unusual procedural posture. Jackson Lewis also assisted on the briefs and in oral argument preparation and was present at the argument.

We will provide a more detailed analysis of this critical opinion shortly. Please contact a Jackson Lewis attorney if you have any questions.

©2018 Jackson Lewis P.C. This material is provided for informational purposes only. It is not intended to constitute legal advice nor does it create a client-lawyer relationship between Jackson Lewis and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome.

Reproduction of this material in whole or in part is prohibited without the express prior written consent of Jackson Lewis P.C., a law firm that built its reputation on providing workplace law representation to management. Founded in 1958, the firm has grown to more than 900 attorneys in major cities nationwide serving clients across a wide range of practices and industries including government relations, healthcare and sports law. More information about Jackson Lewis can be found at www.jacksonlewis.com.

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