Supreme Court Deals Blow to Civil Class Actions for No-Poach Agreements
On Monday, May 21, 2018, the Supreme Court ruled in Epic Systems Corp. v. Lewis that companies may enforce arbitration clauses in employment contracts to prevent employees from bringing collective or class action suits regarding workplace issues. The Court held that the Federal Arbitration Act trumps the National Labor Relations Act, which confers protections for collective bargaining and other acts of mutual protection, and that federal courts must enforce arbitration clauses as written. Among other wide-ranging effects, the decision will deal a substantial blow to class action plaintiffs’ lawyers looking to capitalize off of the recent focus of federal antitrust authorities on prosecuting so-called “no-poach” and “wage-fixing” agreements among competing employers.