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If the Supreme Court rules in favor of the individual arbitration clauses, then the courts will no longer need to be involved in employment disputes. Individual arbitrators would handle suits between the employers and each employee. The Supreme Court will be deciding how much power employees have as a group and whether they can sue employers as a group. Consider the cost for employers when they should deal with large groups of employees - hundreds or thousands of them. Class action is easier for employees, too. So, consider the work for individual employees who are forced to arbitration against a well-prepared employer. The Supreme Court’s decision, especially if it is in favor of the businesses, could certainly affect working conditions for the foreseeable future. Employers could be more likely to violate labor laws because the consequences would be minimal. Employees would have very little recourse as the courts would be taken out of the equation.  

Arbitration does not favor the employee

Arbitration is not in the best interest of the employees, but it is likely that the courts will rule in favor of employers. When employers and employees use arbitration, employees are at a disadvantage because the dispute is a private matter. Arbitration also limits the information that employees can use in the dispute, which puts them at a disadvantage against their powerful employers. They are also unable to appeal against unfavorable decisions.  

Predicting the Supreme Court’s decision

With the move away from employee’s rights to organize, it is likely that the courts will rule in favor of companies and their desire to work through arbitration. The conservative majority that was reinstated when Neil Gorsuch was confirmed as a justice and conservatives tend to favor those who provide labor. Moving away from class-action suits is also on the side of the Department of Justice which moved to the employer’s side and moved away from the National Labor Relations Board - which governs the relations between the employer and employee. Many are predicting that the Federal Arbitration Act will become the rule of the land. The Supreme Court could also address opt-out clauses, where employees have 30 days to opt out of arbitration, too. Uber uses opt-out clauses. These clauses complete strip any rights to organize against unfair labor practices. Unfortunately, employees sign these clauses and they do not know what they are doing. If the court leans toward employers over employees, these clauses could stand, too.