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CLIENT ALERT: Class Action Waivers in Employment Contracts Upheld by Supreme Court

Client Alert
May 24, 2018

On May 21, 2018, in a 5-4 decision and a major win for employers, the United States Supreme Court upheld the legality of waivers in employment contracts that prohibit employees from grouping claims together in collective or class actions in favor of individual arbitration proceedings. See Epic Sys. Corp. v. Lewis, ___U.S.___ (2018).

Employers have used these collective/class action waivers to protect against collective action wage and hour claims. Employees and the National Labor Relations Board (“NLRB”) had challenged the legality of such provisions, arguing that they violate the National Labor Relations Act (the “NLRA”) prohibition against employers interfering with employees’ rights to engage in “concerted activities for the purpose of collective bargaining or other mutual aid or protection.” See 29 U.S.C. § 157.  Employers’ argued, under the Federal Arbitration Act (the “FAA”), that arbitration agreements entered into through a lawful contract must be upheld. 9 U.S.C. § 2. The United States Supreme Court resolved the conflict in favor of the FAA and employers.

Employers are encouraged to consult with their legal counsel to determine whether collective/class action waivers may be beneficial to their business or review waivers already in place to determine whether such waivers fit squarely in the United States Supreme Court’s recent decision. BMD’s employment attorneys are available for such consultation.  Should you have any questions regarding the United States Supreme Court’s decision or class/collective action waivers, please contact Adam D. Fuller at adfuller@bmdllc.com.

Labor LawNational Labor Relations BoardNational Labor Relations ActU.S. Supreme Court
Client Alert

Medicare Updates: Prior Authorizations and Physician Fee Schedule

September 8, 2025The Centers for Medicare & Medicaid Services (CMS) has announced two key updates effective January 1, 2026: a six-state prior authorization pilot program targeting high-risk services under the WISeR Model, and proposed revisions to the Physician Fee Schedule (PFS) that include increased payment rates, expanded telehealth coverage, and updated policies for chronic care, behavioral health, and rural providers.Client Alert

USCIS Policy Updates: Implications for Business Immigration

August 20, 2025In August 2025, USCIS issued three key policy updates enhancing vetting, good moral character (GMC) evaluations, and scrutiny of "anti-American" conduct in immigration adjudications. These policy memos will impact employers sponsoring foreign workers, including H-1B, L-1, EB visas, adjustments, and naturalization.Client Alert

Ohio Passes Antidiscrimination Provision for CRNA Reimbursement

August 14, 2025Ohio has passed House Bill 96, introducing a provider nondiscrimination provision that requires health plans to reimburse certified registered nurse anesthetists (CRNAs) at the same rate as physicians for the same services. The law aims to improve patient access to care by eliminating payment discrimination against CRNAs and will take effect on September 30, 2025.Client Alert

Ohio Board of Pharmacy | Administrative Code Rule Changes

July 16, 2025The Ohio Board of Pharmacy (“BOP”) recently posted notices of Ohio Administrative Code rule changes related to record keeping and the sale and distribution of certain ephedrine-containing products.Client Alert

A Shift in Coverage: HHS Reinterprets “Federal Public Benefit” Under PRWORA

July 16, 2025The U.S. Department of Health and Human Services rescinded a 1998 interpretation of “federal public benefit” used in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) on July 10, 2025. This notice removes "outdating exclusions" and includes additional programs under “federal public benefit."
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