How Recent Court Decisions Affect Mandatory Arbitration

Katz, Marshall & Banks partner Lisa Banks spoke at a CPR Institute panel about how recent court decisions and regulatory developments affect mandatory arbitration in employment disputes.  

Ms. Banks addressed the recent Supreme Court case, Epic Systems v. Lewis, which permitted employers’ use of mandatory arbitration clauses to prohibit employees from pursuing collective actions. The panel discussed the implications for employees who are prohibited from arbitrating collectively, or as a class. Considering the impact of the court’s decision on the future of employment class actions, the panel explored how future administrations may try to work around the verdict through regulatory measures.

Ms. Banks also discussed Henry Schein v. Archer & White Sales, in which the Supreme Court ruled unanimously that courts do not have the power to override the contract signed by the parties. Instead, the issue of arbitrability is delegated to an arbitrator. Ms. Banks spoke about what unanswered questions still remain in light of Schein, and how amicus briefs should be used to try to influence arbitration law.