States’ attempts to ensure employees can take their workplace disputes to court are seeing their efforts chipped away by the US Supreme Court.
Forty-three states have laws focused on alternative dispute resolution between employers and employees, according to the Legal Information Institute at Cornell Law School. Many of those statutes say that arbitration language contained in various types of employment aren’t enforceable.
The state laws can run afoul of federal preemption, which generally holds valid arbitration agreements are enforceable and should be treated like any other legally formed contract between employers and employees.
The US Supreme Court has consistently held employers can enforce individual arbitration agreements as well as class action language prohibiting an employee class from launching a collective complaint through arbitration against an employer.
The arbitration-friendly rulings have led more employers to use the agreements in an attempt to mitigate exposures to expensive jury-trial outcomes, especially now as workers return to offices following the worst episodes of the Covid-19 pandemic, the lawyers said.
“I would estimate about half of the employee population that my clients have are subject to arbitration agreements. And that’s a higher percentage than three...
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