A Bumpy Road for Arbitration Under the Biden Administration?
With a new administration taking control of the Presidency and Congress (via the Vice President’s ability to break ties in the Senate), there may be renewed focus on efforts to curtail the use of mandatory arbitration agreements. On the legislative front, there may be bills that prohibit mandatory pre-dispute arbitration agreements or make it an “unfair labor practice” for employers to enter into agreements with class waivers. Democrats’ ability to pass such legislation is doubtful given the likelihood of a filibuster. As a result, federal agencies may turn to rulemakings that prohibit class waivers for specific types of claims, as they did during the Obama administration. Such efforts would have to withstand scrutiny under the Supreme Court’s decision in Epic Systems. Motor carriers, whose arbitration agreements are often deemed exempt from the Federal Arbitration Act, should still be able to rely on state arbitration laws for enforcement, although they will need to monitor the preemptive effect of developments at the federal level.
A quarterly newsletter of legal news for the clients and friends of Scopelitis, Garvin, Light, Hanson & Feary
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
A Bumpy Road for Arbitration Under the Biden Administration?
With a new administration taking control of the Presidency and Congress (via the Vice President’s ability to break ties in the Senate), there may be renewed focus on efforts to curtail the use of mandatory arbitration agreements. On the legislative front, there may be bills that prohibit mandatory pre-dispute arbitration agreements or make it an “unfair labor practice” for employers to enter into agreements with class waivers. Democrats’ ability to pass such legislation is doubtful given the likelihood of a filibuster. As a result, federal agencies may turn to rulemakings that prohibit class waivers for specific types of claims, as they did during the Obama administration. Such efforts would have to withstand scrutiny under the Supreme Court’s decision in Epic Systems. Motor carriers, whose arbitration agreements are often deemed exempt from the Federal Arbitration Act, should still be able to rely on state arbitration laws for enforcement, although they will need to monitor the preemptive effect of developments at the federal level.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.