According to the New York Times, a federal appeals court ruled last week that companies cannot force their employees to sign away their rights to band together in legal actions. In doing this, they delivered a major victory for American workers and opened an opportunity for the Supreme Court to weigh in.
1. What company is at the heart of this ruling? Discuss the specifics of the case and why the judges feel that the company violated the laws.
2. Why have arbitration issues increased over the last 10 years? Discuss both benefits and costs.
3. What decisions in 2011 and 2013 by the Supreme Court blessed the widespread use of arbitration? Discuss whether you think this appeals case is different.
Silver-Greenberg, J. and N. Scheiber. (2016). Court Rules Companies Cannot Impose Illegal Arbitration Clauses. The New York Times, May 26 (Retrievable online at http://www.nytimes.com/2016/05/27/business/dealbook/court-rules-companies-cannot-impose-illegal-arbitration-clauses.html)