Arbitration Provision Barring Class Action Ruled Void

On May 26, 2016, the U.S. Court of Appeals for the Seventh Circuit in Lewis v. Epic Systems issued the first appellate decision to agree with the National Labor Relations Board (NLRB) that §7 of the National Labor Relations Act bars employers from requiring as a condition of employment that employees agree to an arbitration provision precluding class or collective actions. Epic Systems sets up a conflict with other courts of appeals, which have held that the NLRB’s rule clashes with the Federal Arbitration Act. In this article, partner Holly Weiss examines the details of the Seventh Circuit’s ruling and its implications for employers. Former SRZ attorney Joseph Brown assisted in the preparation of this article.