Seventh Circuit Pans Arbitration Pact with Class Action Waivers Based on NLRA, Creates Circuit Split | Practical Law
In Lewis v. Epic Systems Corp., the US Court of Appeals for the Seventh Circuit held that an employment arbitration provision violates Sections 7 and 8 of the National Labor Relations Act (NLRA) if it precludes employees from seeking any class, collective, or representative remedies in a wage-and-hour dispute. In addition, nothing in the Federal Arbitration Act (FAA) saves this type of ban on collective action, and there is no conflict between the NLRA and the FAA. The Seventh Circuit's decision creates a circuit split with the US Court of Appeals for the Fifth Circuit.