SCOTUS Rules in Epic Systems: What It Means for Securities Arbitration
Securities Arbitration Commentator, Vol. 2018, No. 3
6 Pages Posted: 24 Jul 2018
Date Written: June 15, 2018
In a 5-4 decision split along ideological lines, the Supreme Court on May 21 held in Epic Systems Corp. v. Lewis, No. 16-285, that the Federal Arbitration Act (“FAA”) permits employers to use arbitration clauses containing class action waivers, notwithstanding the National Labor Relations Act’s (“NLRA”) protections of workers’ rights to act collectively. Justice Neil Gorsuch authored the majority Opinion, joined by Justices Alito, Kennedy, and Thomas, and Chief Justice Roberts. The Court’s liberal wing dissented in a blistering Opinion authored by Justice Ginsburg, joined by Justices Breyer, Kagan, and Sotomayor. This article covers what the decision may mean for the securities industry.
Keywords: Supreme Court, SCOTUS, arbitration, employment
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