{"id":1031,"date":"2018-05-21T14:26:34","date_gmt":"2018-05-21T18:26:34","guid":{"rendered":"http:\/\/www.gopplaybook.com\/?p=1031"},"modified":"2018-05-28T14:30:52","modified_gmt":"2018-05-28T18:30:52","slug":"supreme-court-rules-that-companies-can-require-workers-to-accept-individual-arbitration","status":"publish","type":"post","link":"https:\/\/www.gopplaybook.com\/?p=1031","title":{"rendered":"Supreme Court rules that companies can require workers to accept individual arbitration"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"https:\/\/www.washingtonpost.com\/video\/c\/embed\/4cd7c792-5d21-11e8-b656-236c6214ef01\" width=\"480\" height=\"290\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><span class=\"powa-tease franklin-light\">The Supreme Court ruled May 21 that companies can require workers to accept individual arbitration. The Post&#8217;s Robert Barnes explains why that&#8217;s significant.<\/span><span class=\"powa-byline franklin-light\">(Video: Monica Akhtar\/Photo: Ricky Carioti\/The Washington Post)<\/span><\/p>\n<article class=\"paywall\">\n<p data-elm-loc=\"1\">An ideologically divided Supreme Court ruled Monday that companies may require workers to settle employment disputes through individual arbitration rather than joining to press their complaints, a decision affecting as many as 25\u00a0million workers.<\/p>\n<p data-elm-loc=\"2\">The court\u2019s conservative majority said that the<a href=\"https:\/\/www.supremecourt.gov\/opinions\/17pdf\/16-285_q8l1.pdf\">\u00a05-to-4 ruling\u00a0<\/a>was a logical reading of federal law, and Congress\u2019s preference for using arbitration to avoid costly and time-consuming litigation.<\/p>\n<p data-elm-loc=\"3\">But the decision, involving a wage dispute, was roundly criticized on the left, and advocates said it could make it harder to press other workplace complaints such as discrimination and sexual harassment.<\/p>\n<p data-elm-loc=\"4\">\u201cEmployees may now be forced behind closed doors into an individual, costly \u2014 and often secret \u2014 arbitration process,\u201d said Fatima Goss Graves, president and chief executive of the National Women\u2019s Law Center. \u201cThis will stack the deck in favor of the employer.\u201d<\/p>\n<p data-elm-loc=\"5\">The decision also underscored the importance of the 2016 presidential election\u2019s impact on the judiciary. The Obama administration and the National Labor Relations Board had backed workers in the cases, but after President Trump was elected, the Justice Department threw its support to the employers.<\/p>\n<p data-elm-loc=\"6\">And the ruling was written by Trump\u2019s nominee to the court, Justice Neil M. Gorsuch. It is far more likely that the 5-to-4 decision would have gone the other way if President Barack Obama\u2019s nominee to the court, Judge Merrick Garland, had been confirmed.<\/p>\n<p data-elm-loc=\"7\">The decision came in what is considered the most important business case of the term. It expands upon recent Supreme Court decisions that permit corporations to avoid class-action lawsuits from consumers by enforcing contracts that call for individual arbitration.<\/p>\n<p data-elm-loc=\"8\">Gorsuch, writing for the conservative majority, outlined the question presented by this case: Should employers be allowed to insist that workplace disputes be handled in one-on-one arbitration, or should employees always have an option of bringing claims in collective actions?<\/p>\n<p data-elm-loc=\"9\">\u201cAs a matter of policy these questions are surely debatable,\u201d Gorsuch wrote. \u201cBut as a matter of law the answer is clear. In the Federal Arbitration Act, Congress has instructed federal courts to enforce arbitration agreements according to their terms \u2014 including terms providing for individualized proceedings.\u201d<\/p>\n<p data-elm-loc=\"10\">Gorsuch was joined by Chief Justice John G. Roberts Jr. and Justices Anthony M. Kennedy, Clarence Thomas and Samuel A. Alito Jr.<\/p>\n<p data-elm-loc=\"11\">Workers had contended that another federal law, the National Labor Relations Act, makes illegal any contract that denies employees the right to engage in \u201cconcerted activities\u201d for the purpose of \u201cmutual aid and protection.\u201d That means that some sort of collective action cannot be prohibited, the workers say.<\/p>\n<p data-elm-loc=\"12\">That was the thrust of a forceful dissent from Justice Ruth Bader Ginsburg, who called the decision \u201cegregiously wrong\u201d and underlined her objections by reading part of her dissent from the bench.<\/p>\n<p data-elm-loc=\"13\">\u201cThe court today holds enforceable these arm-twisted, take-it-or-leave-it contracts \u2014 including the provisions requiring employees to litigate wage and hours claims only one-by-one,\u201d she said. \u201cFederal labor law does not countenance such isolation of employees.\u201d<\/p>\n<p data-elm-loc=\"14\">Trying to arbitrate such claims individually would be too expensive to be worth it, she wrote, and \u201cthe risks of employer retaliation would likely dissuade most workers from seeking redress alone.\u201d<\/p>\n<p data-elm-loc=\"15\">Although unaddressed by the majority, Ginsburg said she did not read the opinion to \u201cplace in jeopardy\u201d those discrimination protections that can be proved only on a class-wide basis, such as gender or race. She was joined by Justices Stephen G. Breyer, Sonia Sotomayor and Elena Kagan.<\/p>\n<p data-elm-loc=\"16\">The cases involve non-unionized workers, but labor leaders said it was representative of how the court sides with business over workers. \u201cFive justices on the Supreme Court decided that it is acceptable for working people to have our legal rights taken away by corporations in order to keep our jobs,\u201d AFL-CIO President Richard Trumka said.<\/p>\n<p data-elm-loc=\"17\">Unions are bracing for another Supreme Court case yet to be decided, which could forbid public employee unions from collecting fees from nonmembers to cover the cost of contract negotiations.<\/p>\n<p data-elm-loc=\"18\">Arbitration contracts are a growing trend. Ginsburg wrote in her dissent that only 2.1\u00a0percent of non-unionized companies imposed mandatory arbitration agreements on their employees in 1992, but nearly 54 percent do now.<\/p>\n<p data-elm-loc=\"19\">She took exception to Gorsuch\u2019s description that workers had \u201cagreed\u201d to abide by one-to-one arbitration.<\/p>\n<p data-elm-loc=\"20\">One of the companies, Epic Systems Corp., emailed its employees the arbitration agreement and said that if they continued to work at the company, they would be \u201cdeemed\u201d to have accepted the terms.<\/p>\n<p data-elm-loc=\"21\">Hours after the decision, one law firm, Ogletree Deakins, announced an \u201cautomated tool that quickly prepares custom arbitration agreements with class action waivers based on employers\u2019 requirements and preferences.\u201d<\/p>\n<p data-elm-loc=\"22\">But Gregory F. Jacob, a Washington lawyer who previously served in the Labor Department, said the business community was not waiting on a go-ahead from the Supreme Court.<\/p>\n<p data-elm-loc=\"23\">\u201cMost employers expected this decision, and did not hesitate where desired to insert individualized arbitration provisions into employment agreements,\u201d he said in a statement. \u201cThis decision thus will not see a huge increase in the use of such provisions, but it does protect employers\u2019 settled expectations and avoids placing our nation\u2019s job providers under the threat of additional burdensome litigation drain.\u201d<\/p>\n<p data-elm-loc=\"24\">The decision was one of the most impactful of Gorsuch\u2019s fledgling career on the court. Gorsuch, 50, engaged in a point-by-point debate with Ginsburg, 85, who wore the collar she has said she favors when delivering a meaningful dissent.<\/p>\n<p data-elm-loc=\"25\">\u201cAs I see it, in relatively recent years, the court\u2019s Arbitration Act decisions have taken many wrong turns,\u201d Ginsburg wrote. \u201cYet, even accepting the court\u2019s decisions as they are, nothing compels the destructive result the court reaches today.\u201d<\/p>\n<p data-elm-loc=\"26\">Suits to enforce workplace rights collectively \u201cfit comfortably\u201d under the National Labor Relations Act promises, she said.<\/p>\n<p data-elm-loc=\"27\">Without them, the \u201cinevitable result\u201d of the decision \u201cwill be the underenforcement of federal and state statutes designed to advance the well-being of vulnerable workers,\u201d she wrote.<\/p>\n<p data-elm-loc=\"28\">Gorsuch said Ginsburg\u2019s dissent \u201ceven suggests we have resurrected the long-dead \u2018yellow dog\u2019 contract,\u201d in which employers attempted to forbid employees from joining unions.<\/p>\n<p data-elm-loc=\"29\">\u201cBut like most apocalyptic warnings, this one proves a false alarm,\u201d Gorsuch wrote.<\/p>\n<p data-elm-loc=\"30\">Ginsburg\u2019s objections are to policy, he said, but those decisions are not for judges to make but \u201cthe policymakers in the political branches where those questions remain hotly contested,\u201d Gorsuch said.<\/p>\n<p data-elm-loc=\"31\">While the decision was largely supported by the business community, some Democrats in Congress said the ruling was a call for action.<\/p>\n<p data-elm-loc=\"32\">The combined cases are\u00a0<i>EPIC Systems Corp. v. Lewis, Ernst &amp; Young v. Morris<\/i>\u00a0and\u00a0<i>NLRB v. Murphy Oil<\/i>.<\/p>\n<\/article>\n<div id=\"cLoZD72LieD0Tq\" class=\"chain-wrapper standard-chain in-chain border-bottom-hairline border-bottom-100-pct pb-layout-item pb-chain pb-c-standard-chain full\" data-chain-name=\"no-name\">\n<div class=\"clear\"><\/div>\n<\/div>\n<div id=\"f0a3GQMLieD0Tq\" class=\"moat-trackable pb-f-theme-normal pb-f-dehydrate-false pb-f-async-true full pb-feature pb-layout-item pb-f-article-article-author-bio\" data-chain-name=\"no-name\" data-feature-name=\"no-name\" data-feature-id=\"article\/article-author-bio\" data-pb-fingerprint=\"0fWfqoxeKqT\">\n<div class=\"pb-bottom-author-wrapper border-bottom-hairline border-bottom-100-pct\">\n<div class=\"pb-bottom-author \">\n<div class=\"pb-headshot col-xs-0 col-sm-2\"><img data-recalc-dims=\"1\" decoding=\"async\" class=\"\" src=\"https:\/\/i0.wp.com\/www.washingtonpost.com\/resizer\/x3lCf9cxAZkNCH-g7wR_TF-o-nQ%3D\/180x180\/s3.amazonaws.com\/arc-authors\/washpost\/3da997f2-0d32-4947-9198-df6e815cb296.png?ssl=1\" \/><\/div>\n<div class=\"pb-author-info col-sm-offset-2\">\n<div class=\"pb-author-bio\">Robert Barnes has been a Washington Post reporter and editor since 1987. He joined The Post to cover Maryland politics, and he has served in various editing positions, including metropolitan editor and national political editor. He has covered the Supreme Court since November 2006.<\/div>\n<p><a href=\"https:\/\/twitter.com\/intent\/follow?screen_name=scotusreporter\"><i class=\"fa fa-twitter\"><\/i>\u00a0Follow @scotusreporter<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Supreme Court ruled May 21 that companies can require workers to accept individual arbitration. The Post&#8217;s Robert Barnes explains why that&#8217;s significant.(Video: Monica Akhtar\/Photo:&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1032,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[21],"tags":[],"class_list":["post-1031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national-news"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.gopplaybook.com\/wp-content\/uploads\/2018\/05\/2018-05-28_14-30-19.jpg?fit=573%2C319&ssl=1","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p8VBh7-gD","jetpack-related-posts":[{"id":484,"url":"https:\/\/www.gopplaybook.com\/?p=484","url_meta":{"origin":1031,"position":0},"title":"Trump Lawyer Obtained Restraining Order to Silence Stormy Daniels","author":"Donnie","date":"March 7, 2018","format":false,"excerpt":"By\u00a0JIM RUTENBERG\u00a0and\u00a0PETER BAKERMARCH 7, 2018 \u00a0President Trump\u2019s lawyer secretly obtained a temporary restraining order last week to prevent a pornographic film star from speaking out about her alleged affair with Mr. Trump, according to legal documents and interviews. 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So was the GOP\u2019s silence.","author":"Donnie","date":"August 12, 2023","format":false,"excerpt":"By The Editorial Board Chicago Tribune, Published April 13, 2023 U.S. District Judge Matthew Kacsmaryk of Texas is a household name now. 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But the biggest casualty with the court\u2019s latest ruling is to our democracy. By\u00a0\u00a0CST Editorial BoardJul 1, 2024, 9:50pm EDT Demonstrators rally outside the U.S. Supreme Court on Monday, when the court released its ruling in Trump v. 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Ann Spurling for The New York Times The new corporate tax cuts are unlikely to stimulate the level of job creation and wage growth that the Trump administration\u2026","rel":"","context":"In &quot;National News&quot;","block_context":{"text":"National News","link":"https:\/\/www.gopplaybook.com\/?cat=21"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.gopplaybook.com\/wp-content\/uploads\/2018\/06\/2018-06-10_20-59-07.jpg?fit=798%2C512&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.gopplaybook.com\/wp-content\/uploads\/2018\/06\/2018-06-10_20-59-07.jpg?fit=798%2C512&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.gopplaybook.com\/wp-content\/uploads\/2018\/06\/2018-06-10_20-59-07.jpg?fit=798%2C512&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.gopplaybook.com\/wp-content\/uploads\/2018\/06\/2018-06-10_20-59-07.jpg?fit=798%2C512&ssl=1&resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.gopplaybook.com\/index.php?rest_route=\/wp\/v2\/posts\/1031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gopplaybook.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gopplaybook.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gopplaybook.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gopplaybook.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1031"}],"version-history":[{"count":1,"href":"https:\/\/www.gopplaybook.com\/index.php?rest_route=\/wp\/v2\/posts\/1031\/revisions"}],"predecessor-version":[{"id":1033,"href":"https:\/\/www.gopplaybook.com\/index.php?rest_route=\/wp\/v2\/posts\/1031\/revisions\/1033"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gopplaybook.com\/index.php?rest_route=\/wp\/v2\/media\/1032"}],"wp:attachment":[{"href":"https:\/\/www.gopplaybook.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gopplaybook.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gopplaybook.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}