Epic Systems Corp. v. Lewis, No. 16-285; Ernst & Young LLP et al. v. Morris et al., No. 16-300; National Labor Relations Board v. Murphy Oil USA, Inc., et al., No. 16-307 (May 21, 2018).
The Supreme Court's decision resolves the circuit split on whether class or collective action waivers contained in employment arbitration agreements violate the National Labor Relations Act (NLRA). The Court ruled in a 5-4 decision authored by Justice Neil Gorsuch.
California Employers: CA's PAGA (Private Attorney General Act)
In light of the Supreme Court’s opinion, employers can continue to utilize arbitration agreements as a condition of employment. However, the California Supreme Court has held that employees may still bring “representative actions” under the Private Attorneys General Act, which can expose employers to substantial penalties and attorneys’ fees for violating specified Labor Code violations.