Enforceable, and the routes claimants use around them.
Esshaki Legal Media TeamCurrent as of September 2022
Agreements requiring individual arbitration and waiving class and collective
procedures are generally enforceable.
The basis. Arbitration agreements are enforced according to their terms, and
a class waiver is a term. Arguments that the waiver conflicts with labor law
protections for concerted activity were rejected.
Where waivers do not reach. Claims excluded by statute from predispute
arbitration; claims by employees exempt from the federal arbitration act;
representative claims brought on behalf of a state under enforcement statutes in
some jurisdictions, though the individual component of such claims may be
compelled; and injunctive relief sought on behalf of the public in some states.
Mass arbitration as the practical response: thousands of individual demands
filed simultaneously, generating fee exposure that exceeds the aggregate value
of the claims.
Drafting responses. Batching and bellwether provisions, staged fee
obligations, an informal resolution period with an individualized notice
requirement, and mediation preconditions. Courts have upheld some and struck
others as unconscionable or as delaying tactics.
Opt-out provisions strengthen enforceability by supporting a finding of
voluntary agreement, at the cost of some employees opting out.