Supreme Court OKs Arbitration

May 23, 2018

On Monday, May 21, the U.S. Supreme Court ruled 5-4 that companies can continue to include arbitration clauses in employment contracts as a way to enhance speed, simplicity and inexpensiveness when it comes to employer-employee disputes.

While those opposing the decision cited its likely effect of quashing employees’ ability to band together in class-action suits, those supporting the decision stated that very little will actually change as many employers already are using such clauses.

Justice Neil Gorsuch delivered the majority’s ruling in favor of allowing arbitration clauses, and wrote that, given the role of the Supreme Court was to interpret the governing statutes, the issue was really in the hands of Congress, “…where those questions remain hotly contested.”

The specific case—which was originally three separate cases consolidated into one—had to do with allegations that employers had underpaid employees. Due to arbitration clauses in the workers’ contracts, the workers were unable to formally file in court and also were unable to band together in a suit.

Click here to read the full decision from both the majority and minority.