Employee Arbitration Clauses Face Supreme Court Challenge that Could Hurt Workers

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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.