Arbitration of Class Action Claims Must Be Explicitly Stated in Contract, Supreme Court Rules


Summary

Employees cannot seek arbitration of employment-related claims on a classwide basis unless their arbitration agreement with their employer explicitly provides for such relief, the U.S. Supreme Court ruled April 24. Lamps Plus Inc. v. Varela, 2019 U.S. LEXIS 2943, U.S. Sup. (2019). The decision means employers can compel individual arbitration and avoid the risk of class arbitration -- unless they specifically agree to it.