AmEx Ruling Looms Large For Wage-And-Hour Litigation
By Abigail Rubenstein (June 20, 2013, 9:31 PM EDT) -- Though it came in the context of an antitrust case, the U.S. Supreme Court's Thursday ruling that courts can't invalidate class waivers based on the cost of individual arbitration is expected to give employers a leg up in wage-and-hour litigation, where class waivers have been hotly contested and small individual payouts are common.
In a group of merchants' antitrust case against American Express Co., the high court ruled 5-3 that the Federal Arbitration Act does not allow courts to invalidate a class waiver because the plaintiff's cost of individually arbitrating a federal statutory claim exceeds the potential recovery, reversing a Second...
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