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Class Action Waivers in Employment Agreements Continue to be a Target

By Holly Wheeler & Sarah S. Healey on May 16, 2019
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Democratic leaders are at it again, pushing a bill that would topple the United States Supreme Court 2018 decision in Epic Systems v. Lewis. In effect, the proposed bill would bar employers from requiring class action waivers and mandatory arbitration, thus allow workers to bring employment claims as a group as well as bring claims to court.

The Restoring Justice for Workers Act was introduced in the House of Representatives by Rep. Jerrold Nadler, D-New York (who also sponsored a similar bill in early March), and Rep. Bobby Scott, D-Virginia, and in the Senate by Sen. Patty Murray, D-Washington. The purpose of the bill is “to prohibit forced arbitration in employment disputes” among other things.

Epic Systems decided that employees may be required to waive their rights to bring an employment claim as a class. The proposed bill argues that mandatory arbitration of individual claims prevents employees from protecting their rights, since a class action can be more affordable and less intimidating. The bill would also amend the National Labor Relations Act to prohibit employers from stopping employees from bringing class actions in employment claims, whether in agreements or practices.

Proponents for the proposed bill believe that arbitration clauses are often overlooked in employment agreements and protect the employer and abusers, while dissuading victims from coming forward.

Read more about other recent proposed bills seeking to reverse the Epic decision in our Carmody@Work Blog.

Photo of Holly Wheeler Holly Wheeler

Holly G. Wheeler is an associate in Carmody Torrance Sandak & Hennessey’s Business Services and Labor and Employment groups. Holly’s practice focuses primarily on assisting businesses in all aspects of their operations including entity formation, mergers and acquisitions, and corporate governance.

Read more about Holly WheelerEmail
Photo of Sarah S. Healey Sarah S. Healey

Sarah S. Healey has represented clients in a range of matters involving, for example, claims of employment discrimination, harassment and retaliation, wrongful discharge, breach of contract and fiduciary duty, defamation, unfair trade practices, and misappropriation of trade secrets in federal and state court.

Sarah S. Healey has represented clients in a range of matters involving, for example, claims of employment discrimination, harassment and retaliation, wrongful discharge, breach of contract and fiduciary duty, defamation, unfair trade practices, and misappropriation of trade secrets in federal and state court. Sarah also regularly defends employers before administrative agencies such as the Equal Employment Opportunity Commission and the Commission on Human Rights and Opportunities. Sarah frequently presents on current labor and employment law issues. She also conducts management training for all employers on topics including harassment prevention and performance management, leaves of absence, accommodating employees with disabilities, and wag and hour compliance.

Read more about Sarah S. HealeyEmail
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  • Posted in:
    Employment & Labor
  • Blog:
    Carmody @ Work
  • Organization:
    Carmody Torrance Sandak & Hennessey LLP
  • Article: View Original Source

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