A pair of cases at the U.S. Supreme Court next week will test the expansion of workplace arbitration after years of courts parsing the blurry area of law.
Amazon.com, Inc., Uber Technologies, Inc., and Postmates, Inc., along with states, business groups, and worker advocates will be watching both cases to see how the court rules on the power of the Federal Arbitration Act, the federal law that governs such agreements.
One case will determine which type of transportation workers should be exempt from arbitration agreements, and the other will test whether a unique California law, known as the Private Attorneys General Act, should allow employees to circumvent arbitration pacts.
The Supreme Court in recent decades has repeatedly bolstered the FAA. The issues surrounding arbitration continue to percolate in the courts, and in many cases have had varying results. Exemptions for transportation workers and the California PAGA are examples of how a worker can still successfully circumvent the arbitration process.
Congress, too, has been moving to limit the use of arbitration. President Joe Biden signed one measure into law that carves out cases of sexual assault and harassment from the process. House Democrats have passed an even broader bill effectively banning compelled arbitration of employment-related disputes. The Senate hasn’t voted on the measure.
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