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Are workers’ rights further limited after recent Supreme Court decision?

Job ApplicationEmployees who have grievances against their employers may now be limited in their ability to take legal action. A recent Supreme Court decision could affect more than 25 million people, including both employees and employers.

In Epic Systems Corp v. Lewis, the Supreme Court ruled in a 5-4 majority that employers could limit the rights of employees who wish to take legal action against them. Companies can now force employees to settle disputes through independent arbitration.  Employees may no longer have the option to settle a complaint in court.

Many see this as a blow to unions and employee rights, as employers now can stop employees from collaboratively filing a class-action lawsuit against the employer.

Opponents believe the decision will negatively affect workers, limiting their ability to pursue legal action against their employers.

Proponents believe this a business-friendly decision, allowing employers the ability to settle disputes outside of court in a more cost-effective manner. Additionally, arbitration is a confidential procedure, an appealing alternative to court proceedings that can bring unwanted public attention to a business.

Time will tell to what extent employees are affected by this recent decision, and what the benefits are to businesses. More information on the ruling can be found here.