Supreme Court rules that employers can prevent employees from banding together in class-action lawsuits


The Supreme Court voted 5-4 along ideological lines on Monday to rule that federal arbitration law allows employers to prevent their employees from banding together in class-action lawsuits and require them to go through individual arbitrators for disputes. The ruling, with Justice Neil Gorsuch writing the majority, is a "big win for businesses" and "a major blow to workers," New York's Cristian Farias tweeted.
While supporters of arbitration argue it is cheaper, "critics say companies are trying to strip individuals of important rights, including the ability to band together on claims that as a practical matter are too small to press individually," Bloomberg writes, adding that "about 25 million employees have signed arbitration accords that bar group claims."
Liberal Justice Ruth Bader Ginsburg wrote the 30-page dissent, which is five pages longer than the majority decision, SCOTUSblog reports. She called the ruling "egregiously wrong" and said the Federal Arbitration Act "demands no such suppression for the right of workers to take concerted action for their 'mutual aid or protection.'"
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Gorsuch said that the "policy may be debatable but the law is clear: Congress has instructed that arbitration agreements like those before us must be enforced as written." Read more about the decision on Epic Systems Corp. v. Lewis at SCOTUSblog.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.
-
September 1 editorial cartoons
Cartoons Monday’s political cartoons include Labor Day picnic, branding strategy, and more
-
What is Tony Blair's plan for Gaza?
Today's Big Question Former PM has reportedly been putting together a post-war strategy 'for the past several months'
-
When does autumn begin?
The Explainer The UK is experiencing a 'false autumn', as climate change shifts seasonal weather patterns
-
New York court tosses Trump's $500M fraud fine
Speed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year