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Review arbitration clause for class-action provision

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in Employment Law,Human Resources

If you use arbitration to resolve disputes, now is a good time to have your attorney review your arbitration agreement. A federal court in Minnesota has recently concluded that a valid arbitration agreement may allow collective-action arbitration, even if the agreement itself never mentions the possibility.

Your attorney can help you sort out what yours says and whether there are ways to reduce or eliminate collective arbitrations.

Recent case: Scott Mork claimed his supervisor told him he would not get overtime because the company was classifying him as exempt when he really was hourly.

Mork had signed an arbitration agreement when he took the job. He agreed to arbitration, but insisted he represented all similarly situated employees.

The court agreed, even though the agreement didn’t specifically provide for collective actions. (Mork v. Loram, No. 11-2069, DC MN, 2012)

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