Business Roundtable filed an amicus brief on June 16, 2017, in the U.S. Supreme Court, supporting EY in a case on the enforceability of arbitration clauses in employer-employee disputes.
At issue is whether an agreement that requires an employer and an employee to resolve employment-related disputes through individual arbitration – in the process, waiving class-action litigation – is enforceable under the Federal Arbitration Act (FAA). Business Roundtable contends that the National Labor Relations Act (NLRA) does not prohibit such waivers, but federal appellate courts have split on the issue with serious complications for companies operating in multiple jurisdictions. This litigation consolidates three cases: Ernst & Young LLP v. Morris, in which Business Roundtable filed an amicus brief on October 11, 2016; Epic Sys. Corp. v. Lewis; and NLRB v. Murphy Oil USA, Inc.
To download the brief, click here.
UPDATE: On May 21, 2018, the U.S. Supreme Court ruled 5-4 to uphold employment contracts that require individual arbitration. Such contracts are protected by the Federal Arbitration Act and not blocked by the NLRA, the majority wrote. For the opinion, see here.