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Philadelphia Employment Lawyers: Supreme Court to Decide on Legality of Class Action Bans in Employment Agreements

January 17th, 2017

On Friday, the Supreme Court agreed to decide whether or not employers can legally enforce employment agreements that ban class action lawsuits by their employees. In a variety of workplaces and industries, workers nationwide come up against this issue when signing contracts that waive employee rights to filing class action lawsuits, which cover unpaid overtime, wage disputes, and other workplace conflicts. Consumer advocacy groups state that when employees sign the agreements they will back down from large companies instead of standing up against them when they engage in illegal policies. The agreements may also violate federal law.

In defense of the illegality of the ban, the National Labor Relations Board (NLRB) presented the National Labor Relations Act, which protects employees’ rights to engage in group activities such as a class-action lawsuit. The Public Citizen Litigation Group filed an amicus brief in support of the NLRB. Since courts disagree on the legal status of the ban in employment agreements, the Supreme Court will definitively decide on its legality by reviewing three different cases that exhibit this issue: National Labor Relations Board vs. Murphy Oil USA; Ernst and Young vs. Morris; and Epic Systems vs. Lewis.

If you or somebody you love signed an employment agreement that appears unfair or illegal, call the Philadelphia employment lawyers at Sidney L. Gold & Associates, PC at 215-569-1999 or contact us online for a free case evaluation. We advocate for clients throughout the Delaware Valley and beyond, including Bucks County, Chester County, Delaware County, Montgomery County, and Philadelphia County, as well as South Jersey and New York.

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