The United States Supreme Court has declined to hear a case from Uber drivers who sought to be exempted from a mandatory arbitration clause in their employment contracts. The lawsuit sought to obtain an exemption from the arbitration agreement under the Federal Arbitration Act (FAA). However, because the court refused to hear the appeal, the lower court’s ruling will stand, meaning the Uber drivers’ case will go to arbitration.
Mandatory arbitration agreements have become more common in the past few years, with some employers requiring them of every employee that works for them. These agreements, while poorly understood, can have a substantial impact on an employee’s ability to exercise their legal rights. But why do employers like mandatory arbitration agreements, and why do they put them into employment contracts? Continue reading “Why Do Employers Like Mandatory Arbitration Agreements?”
It is increasingly common for employers to put arbitration clauses in their employees’ contracts. Unfortunately, many employees sign these contracts without understanding what they mean, unintentionally trapping themselves in a potentially troublesome legal arrangement. So what is an arbitration clause, and how can it affect you when it is in your employment contract?
A recent California law that would have made it illegal to put mandatory arbitration clauses in employment contracts has been held up by an injunction from a federal court. The new anti-arbitration law faced a great deal of controversy, as employers have made arbitration agreements an increasingly common part of their employment contracts. The injunction was issued as part of a lawsuit by employers attempting to prevent the law from coming into effect, as it would have this year. Continue reading “California Anti-Arbitration Law Held Up by Federal Injunction”
The National Labor Relations Board (NLRB) has ruled that arbitration agreements containing provisions barring class or collective action do not violate the National Labor Relations Act (NLRA). Additionally, the NLRB ruled that an employer may legally terminate the employment of an employee who refuses to sign an arbitration agreement with class or collective action waivers included in its language. The ruling affirms existing precedent regarding arbitration agreements, although it also departs from precedent in allowing such an agreement to be considered valid, even when it was distributed in response to a collective action it was attempting to halt. Continue reading “NLRA Allows Collective Action Waivers in Arbitration Agreements”