Federal Arbitration Act

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Individuals employed as ramp workers who frequently handle cargo for an airline are “transportation workers” exempt from the Federal Arbitration Act (FAA), the U.S. Supreme Court has held. Southwest Airlines Co. v. Saxon, No. 21-309 (June 6, 2022). Therefore, the employees are not required to arbitrate their wage-hour claims under the FAA, but may…

The U.S. House of Representatives on November 19, 2021, passed the Build Back Better Act (H.R. 5376), ambitious climate protection/social spending legislation that now awaits deliberation in the Senate. Tucked inside the massive bill are numerous provisions of interest to employers. One such provision would amend the National Labor Relations Act (NLRA) to…

In reversing the NLRB’s determination that D.R. Horton, the national home-builder, violated the National Labor Relations Act (“NLRA”) by requiring employees to sign an arbitration agreement that prohibited them from pursuing claims in class or collective actions, the Fifth Circuit held that “the Board’s decision did not give proper weight to the Federal Arbitration Act,”…

The United States Court of Appeals for the Second Circuit issued its much-anticipated decisions in Sutherland v. Ernst & Young and Raniere v. Citigroup Inc. affirming the use of Fair Labor Standards Act (“FLSA”) collective action waivers contained in arbitration agreements.

For an excellent summary of the Second Circuit rulings, visit Jackson Lewis’ Wage and…

Again applying the Federal Arbitration Act (“FAA”) to uphold agreements requiring parties to arbitrate their disputes rather than litigate them in court, the U.S Supreme Court has held that the FAA prohibits courts from invalidating a contractual waiver of class arbitration because the cost of arbitrating a federal statutory claim individually exceeds the potential recovery,…

The U.S. Supreme Court, with Justice Elena Kagan writing for an unanimous Court, ruled that an arbitrator did not exceed his powers under § 10(a)(4) of the Federal Arbitration Act (“FAA”) when he allowed for class arbitration based upon an interpretation of the broad contractual language in an arbitration agreement.  Oxford Health Plan LLC v.