collective action waiver

With the policy behind arbitration embodied in the Federal Arbitration Act (FAA) reinforced by a series of Supreme Court decisions (Stolt-Nielsen (2010); Concepcion (2011) and Greenwood (2012)), employers continue to implement mandatory arbitration programs under the FAA. Among the many reasons to consider implementation of such a program is the utility of a class/collective action

While courts continue to issue varied rulings regarding the appropriateness of collective action certification in FLSA litigations, employers continue to attempt to limit exposure to such broad allegations through several mechanisms. One of these strategies is inclusion of class/collective waiver provisions in arbitration, employment or separation agreements. Such provisions bar initiation and participation in class or collective

As the surge of wage and hour collective actions continues, one strategy utilized by employers to avoid such multi-plaintiff litigations is the use of arbitration agreements with class/collective action waivers.  In essence, such provisions mandate that an employee arbitrate any wage and hour and other (subject to certain limitations) disputes on an individual basis.   Arbitration