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Employment contracts are under fire from courts all over the United States, including the Supreme Court. Large employers and their employees are working together with agreements that include very different clauses regarding work-related claims. Historically, companies and their employees would get involved in collective work-related claims and sometimes in class actions. Now, employees are waiving these rights and working individually with employers through arbitration.  

Disagreements in circuit courts

The circuit courts have been unable to come to an agreement about the enforceability of these employment contracts that include arbitration clauses. Three circuit courts decided they are enforceable and two decided they are not. Therefore, the Supreme Court has taken on the National Labor Relations Board v. Murphy Oil, USA, Inc. as well as a pair of cases that question these arbitration clauses. The cases also will look at which labor act has precedence: The National Labor Relations Act or the Federal Arbitration Act. The cases are important for labor relations, especially if the Supreme Court decides the arbitration clauses are not in violation of either of the labor acts. If the clauses for individual arbitration are legal, then employees would be involved in employment disputes. But, if these individual arbitration clauses to violate labor acts, then employers can be sued collectively by employees.  

Arbitration benefits employers

This court case has the eyes of big tech companies, especially those like Uber. If the individual arbitration clauses are found legal, then large companies like Uber can work one-on-one with employees rather than deal with costly class action suits. Employees can waive their rights to class action employment suits, which helps large companies. Uber is not the only company that asks its employees to sign away their rights to class action suits, in fact, Google does the same. Both large tech companies, Google and Uber, are involved in potential legal issues that could become class action suits. Some drivers in California are looking to file a class-action case against Uber for violating employment laws regarding pay. Google also has a pending class-action suit regarding gender discrimination. Both companies are awaiting the outcome of the Supreme Court cases, as the employees involved in the cases signed the arbitration clauses, but want to file class-action suits. It the employees are forced to follow through the individual arbitration clauses, the tech giants would be able to work with the individual employees rather than the immense numbers involved in class-action situations.