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Thursday, May 26, 2016

Ind. Decisions - 7th Cir. decides Wis. case re arbitration clauses and NLRA

In Jacob Lewis v. Epic Systems Corporation (WD Wis.), a 22-page opinion, Chiuef Judge Wood writes:

Epic Systems, a health care software company, required certain groups of employees to agree to bring any wage-and-hour claims against the company only through individual arbitration. The agreement did not permit collective arbitration or collective action in any other forum. We conclude that this agreement violates the National Labor Relations Act (NLRA), 29 U.S.C. §§ 151, et seq., and is also un-enforceable under the Federal Arbitration Act (FAA), 9 U.S.C. §§ 1, et seq. We therefore affirm the district court’s denial of Epic’s motion to compel arbitration. * * * Because it precludes employees from seeking any class, collective, or representative remedies to wage-and-hour dis-putes, Epic’s arbitration provision violates Sections 7 and 8 of the NLRA. Nothing in the FAA saves the ban on collective ac-tion. The judgment of the district court is therefore AFFIRMED.

Posted by Marcia Oddi on May 26, 2016 01:57 PM
Posted to Ind. (7th Cir.) Decisions