Supreme Court Says Employers Can Bar Worker Class-Action Lawsuits

  • Justices vote 5-4 along ideological lines to back employers
  • Ruling could affect rights of tens of millions of workers
The Supreme Court says employees can block workers from filing class-action lawsuits.(Source: Bloomberg)
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A divided U.S. Supreme Court ruled that employers can force workers to use individual arbitration instead of class-action lawsuits to press legal claims. The decision potentially limits the rights of tens of millions of employees.

The justices, voting 5-4 along ideological lines, said for the first time Monday that a 1925 federal law lets employers enforce arbitration agreements signed by workers, even if they bar group claims. The majority rejected contentions that a separate law guarantees workers the right to join forces in pressing claims.