Little Person Versus Big Corporation: A Small Victory

If you have a credit card or cell phone, you agreed to a contract clause that requires you to arbitrate your disputes with the corporation. You cannot go to court. Until 2011, some states had laws that disallowed mandatory arbitration when employees and consumers (the most affected groups) sued in a class action. Concrete problem: Your cell provider promised you a free phone, when it wasn’t; or your employer classified you as “exempt,” when you’re not, thereby disallowing overtime pay. Some states had laws that barred these arbitration agreements. The laws allowed class actions on the theory that they were necessary way to police against minor frauds. The Supreme Court invalidated these class-action laws in 2011 (AT&T Mobility LLC v. Conception, 563 U.S. 312). Thus, you are forced to arbitrate your $30 complaint with your cellular company, or your overtime claim for several hundred dollars. If there was a class action lawsuit, nickel-and-diming "shortcuts" would be deterred more effectively. Yesterday, the National Labor Relations Board pushed back on Concepcion when it ruled that Neiman-Marcus cannot force its employees to sign waivers of their right to sue in class actions. https://www.law360.com/employment/articles/687650/nlrb-says-neiman-marcus-mandatory-arbitration-unlawful