EIGHTH CIRCUIT APPLIES BROAD INTERPRETATION OF CONCEPCION TO UPHOLD CLASS-WAIVER ARBITRATION CLAUSE IN EMPLOYMENT DISPUTE
The Eighth Circuit recently reversed a district court’s refusal to compel arbitration in an employment dispute under the Fair Labor Standards Act, enforcing a class-waiver arbitration clause. The district court interpreted the FLSA as providing a right to a class action, and had found that the class waiver in this case was therefore invalid. The district court had also held that Concepcion was not controlling in the employment context, relying on a recent National Labor Relations Board decision. The Eighth Circuit reversed, holding that nothing in the text or legislative history of the FLSA indicates a congressional intent to bar employees from agreeing to arbitrate FLSA claims individually, and that there is no conflict between the FLSA and the FAA. The Eighth Circuit further held that the NLRB decision relied on by the district court was not entitled to deference. In any event, the court explained, the NLRB decision limited its holding to arbitration agreements barring all concerted actions, unlike the agreement in this case, which did not preclude reporting to administrative agencies, which themselves could file representative class suits. The court also rejected the notion that Concepcion and other U.S. Supreme Court precedent upholding the enforceability of class waivers is limited to the consumer context. Owen v. Bristol Care, Inc., No. 12-1719 (8th Cir. Jan. 7, 2013).
This post written by Michael Wolgin.
See our disclaimer.
