SCOTUS Backs Employee Arbitration Agreement
The Court said that “under the Federal Arbitration Act, an ambiguous agreement cannot provide the necessary contractual basis for concluding that the parties agreed to submit to class arbitration,” so the employee was limited to his personal arbitration only. The matter arose when a hacker tricked an employee into disclosing tax information about a company’s 1,300 employees. He’d signed an arbitration agreement but sought a class arbitration on behalf of all those employees. Bottom line: employers can have employees sign arbitration agreements, which may be a more favorable method of dispute resolution for companies.
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