Epic Systems Corp. v. Lewis

This consolidated case addressed whether employers can enforce arbitration agreements that require employees to waive their rights to class or collective litigation. Jacob Lewis and other workers sued their employers for wage and hour violations, seeking collective action. The employers moved to compel individual arbitration based on signed agreements. Lower courts and the National Labor Relations Board found such waivers violated the National Labor Relations Act, which protects concerted activity. The Supreme Court took up the consolidated cases to resolve a circuit split, examining the tension between the Federal Arbitration Act and the National Labor Relations Act.

In a 5-4 decision, the Supreme Court ruled in favor of the employers, holding that the Federal Arbitration Act requires enforcement of arbitration agreements according to their terms, including class action waivers. The National Labor Relations Act does not contain a congressional command overriding the Federal Arbitration Act.

Whether an employer’s arbitration agreement that requires employees to bring claims in individual arbitration and waive class or collective action procedures is enforceable under the Federal Arbitration Act, or whether such a waiver violates the National Labor Relations Act’s protection of concerted employee activities.

The ruling significantly curtailed employees’ ability to band together in class action lawsuits over workplace disputes, channeling most employment claims into individual arbitration. It was hailed by business groups as a victory for efficient dispute resolution and criticized by labor advocates as a major blow to workers’ rights and enforcement of wage and hour laws.