Arbitration
Epic Systems Corp. v. Lewis, 138 S. Ct. 1612 (2018) (U.S.)
Study notes for Epic Systems Corp. v. Lewis: professor notes, cold call prep, exam angles, and memory aids.
The FAA enforces individualized arbitration agreements, and the NLRA does not render such waivers unlawful.
In 'Epic Systems Corp. v. Lewis,' the Supreme Court addressed the interplay between the Federal Arbitration Act (FAA) and the National Labor Relations Act (NLRA). The Court emphasized the strong federal policy favoring arbitration as embodied in the FAA, which manifests in enforcing arbitration agreements as written. A critical aspect of this case is the Court's view that the employee's right to engage in concerted activities under the NLRA does not prohibit the enforcement of agreements that require individualized arbitration and waive class actions. Professors may highlight how this case reflects the ongoing tension between collective bargaining rights and employers' arbitration agreements, particularly focusing on the implications for employees seeking collective redress in wage-related disputes.
Additionally, professors may discuss the dissenting opinions and concerns over workers' rights being curtailed by the prevalence of mandatory arbitration provisions that can limit employees' ability to challenge employer behavior collectively. The case serves as an important touchstone in employment law, illustrating how courts navigate federal statutes that can conflict in their application to workplace disputes.
FAA favors arbitration; NLRA does not override.
| Case | Distinction |
|---|---|
| Murphy Oil USA, Inc. v. NLRB | The Murphy Oil case upheld the enforceability of arbitration agreements similar to Epic Systems, reinforcing that the FAA prevails over conflicting interpretations of the NLRA. |
| D.R. Horton, Inc. v. NLRB | In contrast to Epic Systems, the D.R. Horton decision found that class action waivers could violate employees' NLRA rights, showcasing a conflicting view on the issue. |
| Glatt v. Fox Searchlight Pictures Inc. | Glatt focused on the classification of workers as employees versus independent contractors, not directly tied to arbitration agreements, illustrating the difference in legal focus. |
The enforcement of arbitration agreements respects contractual freedom and promotes economic efficiency by encouraging speedy dispute resolution.
Such enforcement undermines employees' abilities to aggregate claims and protect themselves from widespread employer misconduct.
This case will likely appear on exams in the context of evaluating the enforceability of arbitration agreements in employment law, particularly contrasting the FAA's pro-arbitration stance with the protections offered by the NLRA.