January 26, 2021

Volume XI, Number 26

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January 25, 2021

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Justice Department Switches Sides on Class Action Waivers

Earlier this year, we blogged about the United States Supreme Court’s decision to consider whether requiring employees to agree to arbitration and a waiver of their rights to assert claims through class actions violated the National Labor Relations Act (NLRA).  During the Obama administration, the U.S. Department of Justice supported the position of the National Labor Relations Board (NLRB) that requiring class action waivers as a condition of employment violated the NLRA.  Now, the Justice Department has switched sides and is supporting business, acknowledging in an amicus brief filed with the Supreme Court on June 16 that “[a]fter the change in administration, . . . [it] reconsidered the issue and has reached the opposite conclusion.”

The cases being considered by the Supreme Court are National Labor Relations Board v. Murphy Oil USA, Case No. 16-307,  Epic Systems Corp. v. Lewis, Case No. 16-285, and Ernst & Young LLP v. Morris, Case No. 16-300.  The Supreme Court’s decision will directly affect violations of employment laws, like the Fair Labor Standards Act (FLSA) and Title VII of the Civil Rights Act of 1964, as amended.   Oral argument in these cases is scheduled for October 2017.

Although courts of appeal are split on the issue, the Second Circuit Court of Appeals (which covers New York, Connecticut, and Vermont) has previously held that class action waivers do not violate the NLRA.  As a result, such waivers are currently legal in New York, Connecticut and Vermont.

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© Copyright 2020 Murtha CullinaNational Law Review, Volume VII, Number 173
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About this Author

Salvatore Gangemi, Employment Litigator, Fair Labor Standards Act, Murtha Cullina
Partner

Salvatore G. Gangemi is a Partner in the Litigation Department of Murtha Cullina and a member of the Labor and Employment Practice Group. Mr. Gangemi advises clients with respect to state, federal and local employment laws, including the Fair Labor Standards Act, Title VII, Age Discrimination in Employment Act, Americans with Disabilities Act, Family Medical Leave Act, and New York State and City employment laws.

He handles matters in federal and state courts and before administrative agencies, such as the Equal Employment Opportunity Commission, New York State Division of Human...

914-220-5690
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