Kennedy Poe

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This note will examine the various effects and implications the Supreme Court’s decision concerning the legality of class action waivers within employee-employer contracts will have on employers, employees, and the contracts made between them. Part I will identify class action waivers within an employment contract’s arbitration agreement and will further elaborate upon the legal implications of such waivers being present in the contract. Part II will then discuss the history of the NLRA and assess its present-day role in employee–employer contract formation, in order to provide clarity as to the dispute that has arisen between the NLRA and class action waivers in employment-related arbitration agreements. Part III will analyze the split among the courts of appeals to allow a better understanding of each side of the argument surrounding the issue of class action waivers incorporated into arbitration agreements in employment contracts, as protected by the Federal Arbitration Act (FAA) and the NLAA. Finally, Part IV will discuss the implications upon companies, such as Uber, whose future business and employee–employer relations depend upon the Supreme Court’s ruling. Part IV will also offer a potential resolution to this clear split amongst the circuits.

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