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Supreme Court Sides with Employers on Arbitration Agreements

Arbitration

The U.S. Supreme Court has thrown its support behind the use of mandatory arbitration on an individual basis as a means of resolving employee disputes over labor practices.

The Supreme Court often agrees to rule on questions upon which individual appeals courts have reached different conclusions, to create a uniform national legal standard.

And that’s what the court did with a 5-4 decision in a case called Epic Systems Corp. v. Lewis. The basic question was whether the Federal Arbitration Act has greater authority over arbitration agreements between employers and employees than the National Labor Relations Act (NLRA).

The court consolidated three similar cases in its ruling. In each case, employees had entered into agreements with their employers to resolve any labor disputes that might arise by arbitration, instead of taking the employers to court.  Read more