Class Action Waiver Without Arbitration Agreement

This article briefly discusses the importance of class action waiver statements, the history of their development, and the potential pitfalls of arbitration. Next, it will be considered whether stand-alone class action waivers in Florida employment contracts would be applicable. Why do many observers think that a recent Supreme Court decision could deal the fatal blow to consumer class actions? To the extent that courts outside of Florida have reviewed stand-alone class action waiver statements, most have come to Killion`s conclusion to the contrary and have found that class actions outside of arbitration agreements do not require waiver of substantive rights and are enforceable.49 with respect to the increasing number of cases where it is decided that stand-alone class action waiver statements can be imposed, Florida employers indicate that Florida employers may be able to compel their employees to waive the right of class action without including such a waiver in an arbitration agreement. Member McFerran also found that the Deputy Director`s statements on the withdrawal of the employment plan constituted an unlawful threat that violated Section 7 of the Act. Member McFerran interpreted the Assistant Director`s statements as an attempt to silence the discussion after employees had exercised their right to Division 7 by relieving concerns and questions about the revised arbitration agreement. M. McFerran said a reasonable employee would have understood the assistant director`s testimony as a threat of scheduling removal and/or termination if he had expressed concerns about the terms of his employment. In this case, the NLRB found that the employer had broken the law by requiring candidates to sign and then be required to enforce a waiver of collective and associated deposits that were not included in an arbitration agreement. The employer requested a reconsideration of the NLRB`s decision and the fifth circle found for the employer. The Supreme Court reiterated that the agreement to resolve claims on an individual basis is the type of arbitration sought by the FAA. The Tribunal borrowed the language of Stolt Nielsen`s opinion to explain that individual conciliation arbitration offers a compromise in which “the parties waive the harshness of the proceedings and the appellate review of the courts to realize the benefits of private dispute resolution: lower costs, greater efficiency and speed, and the ability to select specialized arbitrators to resolve specialized disputes.” However, given the cumbersome burden of class actions, these benefits are lacking in class arbitrations.

Therefore, courts cannot give their consent to a pooled arbitration procedure. Arbitration Agreements: Not Necessarily Desirable As reliable as the application of class action waiver in arbitration agreements is, not all employers prefer arbitration to litigation. Advocates of arbitration often argue that arbitration is simpler, less formal, and more flexible than litigation in the court system.16 Indeed, some studies indicate that arbitration can be concluded in a fraction of the time a dispute would take.17 But many of the alleged benefits of arbitration can be cut in both directions. For example, it is extremely difficult to successfully overturn the final decision in a mandatory arbitration procedure – in the event of an adverse outcome for the employer, this frequency is often permanent.18 Employers may also experience an acid surprise when they first learn about the diversity of fee structures for placement. . . .