SCOTUS limits workers' ability to resolve disputes collectively through arbitration
The Supreme Court on Wednesday handed a victory to business in a 5-4 ruling along ideological lines that held that workers are not entitled to resolve disputes through class arbitration in cases where their arbitration agreement is ambiguous.
The opinion drew a flurry of criticism from the court's liberal wing, with each of the four Democratic appointees penning a dissent. But Chief Justice John Roberts, in his opinion for the court, downplayed the criticism, arguing that the"opinion today is far from the watershed" the dissenters claimed it to be.
Justice Elena Kagan said the 9th Circuit's reasoning was based on"a plain-vanilla rule of contract interpretation." Varela filed a lawsuit against the company on behalf of himself and others whose data was stolen. A federal court in California permitted Lamps Plus to force Varela into arbitration, but granted his request for class arbitration. That decision was affirmed by the Ninth Circuit.
"The widely experienced neglect [Varela] identified cries out for collective treatment," Ginsburg wrote."Shut from the Court's sight is the 'Hobson's choice' employees face: 'accept arbitration on their employer's terms or give up their jobs.'"
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