Labor & Employment Developments Blog

Yesterday, the Supreme Court issued its long awaited decision in American Express v. Italian Colors Restaurant.  The 5-3 majority decision reaffirmed that courts should “rigorously enforce” arbitration agreements “according to their terms."  Also, the Court held that there is no right to proceed with claims on a class basis in arbitration and that a standard waiver of the right to proceed on a class action basis is enforceable.  You can read more about the decision here or read the actual decision here. 

Although this was not an employment case, there is no reason to believe that it does not fully apply in the employment context.  Employers who use arbitration provisions and class waivers, and those that would like to use them, should be encouraged.