Mandatory arbitration has long been a fixture in employment agreements. However, there has been confusion over whether this includes the right to bring claims as a class. The consequences of class arbitrations are immense: Once class certification is granted, settlements almost always follow with lawyers pocketing millions of dollars in fees while clients get pennies and coupons. Class certification is the poison pill of arbitration.

Fortunately, on April 24, the U.S. Supreme Court closed the door on class arbitration in its decision in Lamps Plus v. Varela.  

  • Hacked W-2s led to the employee claim.