DISTRICT OF COLUMBIA — The U.S. Supreme Court recently heard arguments concerning three major class action lawsuits against large corporations, some of which pertain to overtime pay and wage theft, over whether or not arbitration agreements can trump workers’ rights to collectively bring action against employers. The outcome will most likely have far reaching, long term consequences for tens of millions of workers across the country who may not have legal recourse to recover unpaid wages.
Proponents of binding arbitration agreements point to the Federal Arbitration Act of 1925 as all the legislation needed to legitimize the use of private contracts that resolve workplace disputes in front of a private arbitrator instead of a court of law. On the other hand, the petitioners to these cases insist the National Labor Relations Act subrogates the Federal Arbitration Act since it gives all workers the right to take collective action.
According to reports, arbitration agreements cover up to 60 million U.S. workers and almost half of those cannot arbitrate their claims on a collective basis. Employers claim arbitrating claims on an individual basis creates a much cheaper and expedient process for the individual and his or her employer to resolve claims. However the truth is is that without the right to litigate wage and labor claims on a collective basis, many workers cannot afford to hire attorneys to fight for their legal rights.
The Fair Labor Standards Act (FLSA) for example, allows similarly situated workers to join together and bring class action and collective action lawsuits to recover their back pay. The FLSA further allows plaintiffs to recover attorneys fees and court costs to cover the cost of litigation if their claims are successful.
Some legal experts have speculated that if the court upholds arbitration agreements almost every business will force such clauses on workers to avoid litigation. While oral arguments go on, the rest of the nation will still have to wait many weeks or even months for the Justices to reach their decision that will either cement workers’ rights to bring collective actions or set labor laws back.
Class Action Overtime Pay Lawsuits
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you feel that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.