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One to Keep An Eye On: NLRB v. Murphy Oil


As with many employment and labor law related cases being litigated around the country, there are always a few that stand out.  This is one to keep an eye on.


Facts:  The National Labor Relations Board ("NLRB") issued a decision in 2014 in this case that employment contracts which banned class action lawsuits and required employees to arbitrate employment disputes on an individual basis violated the National Labor Relations Act.

The Main Issue:  Are employment contracts that require workers to arbitrate disputes individually, and constitute class action waivers, valid under federal labor laws?

Current Status:  A petition for certiorari was filed with the United States Supreme Court by the NLRB and the Justice Department.

Looking Ahead:  I think it is likely that the Supreme Court will consider this issue as two prior cert petitions were recently filed by employers (Epic Systems and Ernst & Young) that also dealt with class action waivers.  Given the split among circuits on the issue (the 5th and 8th Circuits favor class action wavers; the 7th and 9th Circuits have sided with employees and held class waivers were unenforceable; and the 3rd, 4th, 6th, 11th, and D.C. Circuits all currently have the issue in pending cases), I think the Supreme Court is likely to step in and resolve the matter.  

With that being said, the next question is which case the Court will pick to resolve the Circuit split...at this point, there are three good cases on the topic that could be considered.  Also keep in mind that if a new Supreme Court Justice is not appointed before this case is heard and a deadlocked 4 - 4 ruling resulted, the Circuit decisions would stand (even though a split would remain).

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