An Epic Decision: U.S. Supreme Court Rules Class-Action Waivers In Employment Agreements Are Enforceable

Thousands of businesses across the nation breathed a sigh of relief on May 21, 2018, as the U.S. Supreme Court, in a 5-4 decision, ruled that employment contracts containing class-action waivers are enforceable under the Federal Arbitration Act (FAA). The ruling in Epic Systems Corp. v. Lewis not only helps protect thousands of businesses across the nation from costly and time-consuming employment class actions, but also changes the way that claims managers should approach these claims when they first arrive. Bilateral arbitration benefits both employees and employers because it offers speed, efficiency, and informality.