Supreme Court Rules Employers Can Ban Class Action Lawsuits in Arbitration

The Supreme Court ruled that businesses can ban class action lawsuits in litigation, blocking potential class-action lawsuits.

The case challenged provisions in employee contracts called arbitration agreements in which employees agree that if there is a dispute between them and an employer they will resolve it without filing a lawsuit.

The court voted 5-4 that those agreements are legal.

In other words, instead of harnessing collective power, employees who have signed arbitration agreements can’t join a class action lawsuit and instead must seek recourse individually, through arbitration.

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