Employers everywhere will likely rush to get their employees to sign the type of employment agreement the High Court just ruled has great power to protect businesses from costly wage-and-hour lawsuits.
By a 5-4 vote, the Supreme Court just ruled for the first time that employees cannot band together to challenge violations of federal labor laws like the FLSA if they sign employee agreements to arbitrate claims.
It’s a ruling that could impact the rights of tens of millions of non-union, private-sector workers.
In its ruling the High Court specifically cited the 1925 Federal Arbitration Act (FAA), stating that the FAA trumps the more recent National Labor Relations Act (NLRA) and that employees who sign employment agreements to arbitrate claims are required to do so on an individual basis; they are prohibited from banding together to enforce claims of wage-and-hour violations.
Eliminate greatest risk with the stroke of a pen
The ruling here came from three different cases against Ernst & Young LLP, Epic Systems Corp. and Murphy Oil USA Inc.

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