U.S. Supreme Court to Decide On Legality of Arbitration Clauses in Business and Employment Contracts
U.S. Supreme Court to Decide On Legality of Arbitration Clauses in Business and Employment Contracts Feb 14, 2017 On January 13th, the U.S. Supreme Court agreed to hear a case that could have national, broad implications for all employers and businesses, especially those who utilize employment contracts to mandate that any disputes be raised via arbitration rather than in court, and on a one-by-one basis (i.e. the opposite of class action). The decision will also affect countless other businesses, as not only are arbitration clauses present in many employment contracts, but also in many service- and various consumer-based contracts, such as those for nursing homes, cell phones, credit cards, and others. Some experts predict that the Court will uphold the ability for private companies to establish this kind of requirement in employment contracts, not only because that is in accordance with the general freedom to contract, but also because the Court already ruled (in 2011) that the Federal Arbitration Act favors arbitration and allows companies to set these types of limits (see AT&T Mobility v. Concepcion). It is expected that the court will hear these arguments sometime in April. The Connection to Class Waivers Also at issue in the case is whether the National Labor Relations Act, in prohibiting class waivers, essentially protects workers’ rights to class action lawsuits because it technically protects ‘engaging in concerted activities.’ The answer will ultimately have a strong effect on both employers and employees throughout the nation, as arbitration agreements have become so widespread and the current legal patchwork leaves many confused. The Law on Arbitration The Federal Arbitration Act makes arbitration agreements valid, irrevocable, and enforceable. Courts have historically placed arbitration agreements on an equal footing with other contracts because it is a fundamental principle that arbitration is a matter of contract. As a federal law, it also preempts any state laws which declare these types of provisions to be unconscionable. In 2013, Florida joined 17 other states and the District of Columbia in adopting the Revised Uniform Arbitration Act, ultimately leading to the creation of the Revised Florida Arbitration Code. The revisions addressed who decides the arbitrability of a dispute, the availability of provisional remedies before and during, the court’s’ power to enforce rulings by the arbitrator, the arbitrator’s immunity, and various other procedural matters of arbitration. Attorneys Working To Protect Corporate Employers and Businesses As a business owner, any and all issues pertaining to employees and other associates require careful handling and a strong level of both experience and skill. At HD Law Partners, our Tampa business law lawyers possess the knowledge and experience necessary to help prevent potential problems before they occur, while addressing any current difficulties you may be facing. With over 40 years’ combined experience in representing clients in a variety of types and sizes of businesses, we are strong legal advocates, working aggressively to ensure that your company’s best interests are protected. Contact us today for any legal matters related to commercial litigation, business, defense of judgments (in consumer protection), and corporate law. Resources: https://nytimes.com/2017/01/13/us/politics/scotus-mandatory-employee-arbitration.html?mabReward=A1&recp=2&action=click&pgtype=Homepage®ion=CColumn&module=Recommendation&src=rechp&WT.nav=RecEngine&_r=0 https://nytimes.com/2017/01/13/us/politics/scotus-mandatory-employee-arbitration.html?mabReward=A1&recp=2&action=click&pgtype=Homepage®ion=CColumn&module=Recommendation&src=rechp&WT.nav=RecEngine&_r=0 https://supremecourt.gov/opinions/10pdf/09-893.pdf https://leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0682/0682.html https://law.cornell.edu/uscode/text/9/chapter-1 Tags: Business Protection, Employment Contracts, Florida Arbitration Clauses, Revised Uniform Arbitration Act, Tampa Business Lawyer, Tampa Business Lawyers, Tampa Corporate Attorney, Tampa Corporate Attorneys Posted in Arbitration, Business Corporate | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us