Today, in a 5-4 ruling, the Supreme Court held that arbitration agreements that prohibit class or collective actions do not violate an employee’s rights under the National Labor Relations Act (“NLRA”). 584 U.S. ___ (May 21, 2018).
Writing for the majority in the consolidated cases,
Epic Sys. Corp. v. Lewis, Ernst & Young LLP et al., v. Morris et al.,
National Labor Relations Board v. Murphy Oil USA, Inc., et al.
, Justice Neil Gorsuch noted that the “
Court has never read a right to class actions into the [NLRA]
,” and concluded that agreements that require individualized arbitration proceedings do not violate the NLRA. Specifically, Justice Gorsuch explained that the general catch-all language in Section 7 of the NLRA that guarantees employees “the right to . . . engage in other concerted activities for the purpose of . . . other mutual aid or protection” could not displace the Arbitration Act or prohibit individualized arbitrations: