Friday, January 13, 2017

The Next Big Labor Case for the Supreme Court

Have you signed an arbitration agreement with your employer? 
If you have, you didn’t negotiate it. The agreement requires you to go to arbitration, and waive your right to sue in court, over employment matters. The contract likely has a class-action waiver, too. That means if you and others have similar complaints, you can’t bundle them—like you can in court (if the court approves).
Why would you want a class action option? Trials often cost more than $50,000 in attorney’s fees.
But if your claim is bundled, attorneys are more likely to sue in your behalf. Often, they do this on a contingency fee basis. If you lose, they get nothing. If you win, they get 30% plus costs. That comes out of your “win” (judgment or settlement).

Three federal appeals courts have ruled on the validity of these mandatory class action waivers. Two say these agreements cannot be enforced. One says it can. The Supreme Court will decide this issue.
Picture Credit: Kentucky Law Journal

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