U.S. Supreme Court to Decide On Legality of Arbitration Clauses in Business and Employment Contracts
Feb 14, 2017
On January 13th, the U.S. Supreme Court agreed to hear a case that could have national, broad implications for all employers and businesses, especially those who utilize employment contracts to mandate that any disputes be raised via arbitration rather than in court, and on a one-by-one basis (i.e. the opposite of class action). The decision will also affect countless other businesses, as not only are arbitration clauses present in many employment contracts, but also in many service- and various consumer-based contracts, such as those for nursing homes, cell phones, credit cards, and others.
Some experts predict that the Court will uphold the ability for private companies to establish this kind of requirement in employment contracts, not only because that is in accordance with the general freedom to contract, but also because the Court already ruled (in 2011) that the Federal Arbitration Act favors arbitration and allows companies to set these types of limits (see AT&T Mobility v. Concepcion).
Posted in Arbitration ยท By HD Law Partners