Supreme Court Rules Class Action Waiver in Arbitration Agreement is Enforceable

By Thomas McKinney

On April 27, 2011, the US Supreme Court ruled 5-4 that a class action waiver contained in an arbitration agreement is enforceable.  In AT&T Mobility LLC v. Concepcion, the Supreme Court decided that the Federal Arbitration Act preempts a California law that the class-action ban in an arbitration agreement was unenforceable. Employers can require employees to sign arbitration agreements as a requirement of their job – that means that an employee can be fired or have the job offer rescinded if they refuse to sign the arbitration agreement.  Accordingly, an employer can require an employee to waive the right to participate in a class action lawsuit and be forced to resolve any claim before an arbitration panel.

April 28, 2011 – Castronovo & McKinney – Tom McKinney

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Tom McKinney is an experienced NJ Employment Lawyer in all major areas of labor and employment law, including discrimination, harassment, overtime violations, wage and hour claims, sexual harassment, wrongful discharge, Title VII, ADA, ADEA, FMLA, LAD, FLSA, and all other employment law claims. Tom is admitted to practice in the States of New Jersey and New York, United States District Court for the Eastern District of New York, Southern District of New York, District of New Jersey, and United States Court of Appeals for the Third Circuit. Prior to forming the firm, Tom practiced at Gibbons P.C. in Newark, NJ. If you have any questions regarding this article, contact Tom here today.