In January 2017, the United States Supreme Court granted review of the Morris et al. v. Ernst & Young, LLP case which held that the National Labor Relations Act (“NLRA”) prohibits class action waivers in mandatory arbitration agreements for employees. As a result, employers with litigation pending in federal court now have an uphill battle when it comes to enforcing class and collective action waivers in mandatory arbitration agreements.
Worried employers will have to wait for a final answer on the enforceability of such waivers given that the Supreme Court recently announced that the Court would not hear the Ernst & Young case until the 2017 term, which begins in October 2017.
