Divided Supreme Court rules for businesses over workers
Law Journals
The Supreme Court says employers can prohibit their workers from banding together to dispute their pay and conditions in the workplace, an important victory for business interests.
The justices ruled 5-4 Monday, with the court's conservative members in the majority, that businesses can force employees to individually use arbitration, not the courts, to resolve disputes.
The outcome does not affect people represented by labor unions, but an estimated 25 million employees work under contracts that prohibit collective action by employees who want to raise claims about some aspect of their employment.
The result could prompt a new round of lawsuits aimed at limiting class or collective action to raise allegations of racial discrimination.
The Trump administration backed the businesses, reversing the position the Obama administration took in favor of employees.
The court's task was to reconcile federal laws that seemed to point in different directions. On the one hand, New Deal labor laws explicitly gave workers the right to band together. On the other, the older Federal Arbitration Act encourages the use of arbitration, instead of the courts.
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