As has been widely reported, the U.S. Supreme Court ruled in a recent case (AT&T Mobility LLC v. Concepcion) that an arbitration agreement can prohibit an individual from commencing or participating in a class action lawsuit. The High Court ruled that the Federal Arbitration Act preempts state law which says class arbitration bans are unconscionable. While this was not an employment case, many believe this decision could well have a major impact on employment arbitration agreements. If businesses are now able to place an outright ban on class action arbitration, employees may be left with individual arbitration as their only way to receive justice. This may become a backdoor way for attempts by employers to put a halt to major class actions, especially in wage and hour cases. It will take a while for the full impact of this decision to be fully known.
Source: Associated Press
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