Supreme Court Upholds Workplace Arbitration Contracts Barring Class Actions

The Supreme Court on Monday ruled that companies can use arbitration clauses in employment contracts to prohibit workers from banding together to take legal action over workplace issues. From a report: The vote was 5 to 4, with the court's more conservative justices in the majority. The court's decision could affect some 25 million employment contracts. Writing for the majority, Justice Neil M. Gorsuch said the court's conclusion was dictated by a federal law favoring arbitration and the court's precedents. If workers were allowed to band together to press their claims, he wrote, "the virtues Congress originally saw in arbitration, its speed and simplicity and inexpensiveness, would be shorn away and arbitration would wind up looking like the litigation it was meant to displace." Justice Ruth Bader Ginsburg read her dissent from the bench, a sign of profound disagreement. In her written dissent, she called the majority opinion "egregiously wrong." In her oral statement, she said the upshot of the decision "will be huge under-enforcement of federal and state statutes designed to advance the well being of vulnerable workers."