Law Offices of John C. Lane
5/21/18 - SCOTUS Rules in Favor of FAA Mandate to Enforce Arbitration Clauses
In a win for employers, The Supreme Court of the United States decided today in a trio of employment arbitration cases, that the Federal Arbitration Act’s mandate to enforce arbitration clauses as they are written preempts federal labor laws. In the 5-4 decision, the Court specifically ruled that the Arbitration Act trumps the National Labor Relations Act. The 5-4 decision tells employers that their employment contracts may include an arbitration clause that bans class actions, without violating federal labor laws.
Justice Neil Gorsuch wrote the majority opinion. “The policy may be debatable but the law is clear: Congress has instructed that arbitration agreements like those before us must be enforced as written.” Justice Ginsburg called the majority opinion “egregiously wrong,” and urged Congress to change the Act to overrule the decision legislatively.
© May, 2018, Law Offices of John C. Lane