SCOTUS rules class arbitration must be expressly authorized

A recent decision by the U.S. Supreme Court raises the bar for workers who want to pursue claims in arbitration on a classwide basis. In a case that began in federal district court in California, the Supreme Court overturned a decision by the 9th Circuit Court of Appeal (whose rulings apply to all California employers) in favor of an employee who argued his employer's arbitration agreement was ambiguous on the issue of classwide arbitration. Now, under the Federal Arbitration Act (FAA), which applies in both state and federal courts, an arbitration agreement must affirmatively authorize class arbitration for a court to compel it. This is a clear victory for employers.

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