US Appeals Court Rules Against EY’s Use of Class Action Wavers

The 9th U.S. Circuit Court of Appeals in San Francisco ruled 2-1 against EY, making it the second appellate court to support the NLRB’s position that federal labor law prohibits workers’ arbitration agreements from including class action waivers. On the other hand, two appellate courts have rejected the NLRB’s view, making it likely that the U.S. Supreme Court will eventually rule on the issue.As noted by the conflicting decisions, the controversial workplace arbitration clause issue is far from determined, but the NLRB is focused on taking the option out of the hands of employers nationwide. At the same time, smaller employers are starting to look at such arbitration provisions to protect themselves from litigation. However, it may not work out due to the NLRB’s tenacity, until of course the U.S. Supreme Court decides to hear the case.

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Source: www.hrdive.com www.hrdive.com

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