Supreme Court's Forced-Arbitration Ruling Is a Win for Workers
Companies routinely compel customers and employees to waive their right to sue, but that may be changing.
A Supreme Court loser.
Photographer: Joe Raedle/Getty ImagesIt would have been easy to miss what at the Supreme Court earlier this week in a case about arbitration of employment disputes. But the justices’ unanimous decision in Morgan v. Sundance might have far-reaching implications for employers.
The facts of the case may be quickly stated. The plaintiff, an employee of a Taco Bell franchisee, filed a lawsuit challenging the company’s overtime practices. The defendant’s motion to dismiss was denied. Mediation was unsuccessful. Finally, after eight months, the company moved to put the litigation on hold because the employee’s contract required that such disputes be submitted to binding arbitration. The Supreme Court, by a vote of 9-0, held that by waiting so long, the company waived its right to enforce the arbitration clause.