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Mandatory Arbitration Agreements in the Workplace: An Evolving Landscape

Attorneys who practice labor and employment law have encountered a wave of rapid changes in recent months. The #MeToo movement has left every employer wondering how to protect themselves from increased exposure. In addition, the Supreme Court’s recent decision in Epic Systems Corp v. Lewis set a new legal landscape for the entire workforce.

In a 5-4 decision, the Court found that class action waivers do not violate the National Labor Relations Act. Lower courts will now be required to enforce class action waivers in arbitration agreements. Many employment attorneys are now likely receiving this important question from their clients: should my company implement a mandatory arbitration enforcement agreement and class action waiver? The answer is just as complicated – it depends!

While it may be permissible to implement an arbitration agreement with a class action waiver, is it worth the potential backlash employers might face? In the public eye, mandatory arbitration agreements are often viewed as an attempt to silence victims of sexual of harassment. There are many other factors to consider as well. For further detail on the advantages and disadvantages of arbitration agreements, read our full article here and be sure to check out Managing Risk in the #MeToo Era, which provides further guidance on drafting arbitration agreements.

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