« Interim Final Rules for Implementation of Mandatory Health Coverage for Adult Dependent Children Issued | Main | Final Rules Issued on Project Labor Agreements for Federal Construction Projects »

Supreme Court Rules Language of Arbitration Agreement Key to Limiting "Class Action" Arbitration

In an effort to control litigation expenses, many employers have entered into mandatory arbitration agreements with their employees. These agreements sometimes proved to be less effective at limiting the costs associated with employee disputes than employers believed as some courts ruled that the mandatory agreements permitted an individual employee to arbitrate claims on behalf of a class of employees. On April 27, 2010, the Supreme Court issued a decision likely to substantially curtail the availability of class action arbitration. The Court ruled that imposing class arbitration on parties whose arbitration clauses are "silent" on that issue is inconsistent with the Federal Arbitration Act ("FAA"). For further information on the Supreme Court's ruling and its potential impact, see our Legal Alert here.

Posted on Thursday, May 20, 2010 at 04:13PM by Registered Commenterworkplacehorizons.com | Comments Off

PrintView Printer Friendly Version

EmailEmail Article to Friend