Tag Archives: Federal Arbitration Act

Fifth Circuit Reverses NLRB Ruling in D.R. Horton

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,” which encourages the speedy resolution of claims … Continue Reading

Second Circuit Upholds FLSA Collective Action Waivers

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 Hour … Continue Reading

U.S. Supreme Court Re-Affirms Class Action Waivers in Arbitration Agreements; Rejects Effective-Vindication Rule

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, even if the effect of enforcing … Continue Reading

Arbitrator’s Interpretation of a Contract Permitting Class Arbitration Does Not Run Afoul of the FAA

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. Sutter (U.S., Jun. 10, 2013). Here’s an … Continue Reading
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