Sjoberg & Tebelius, P.A.
Serving Minnesota & Western Wisconsin
651-315-8856

Supreme Court Sides with Businesses on Arbitration Issue

AllIn.jpgResolving disputes between employers and employees can be a complicated and acrimonious process. Unfortunately, it can be costly in terms of time, resources, and money to settle these matters, so it is not surprising that employers often favor options that make the process easier and less expensive.

One option employers across Minnesota may explore is including arbitration clauses within employment contracts, though these clauses are often at the center of employment disputes. In fact, one such recent dispute went all the way up to the U.S. Supreme Court.

Reconciling federal laws on banding together, arbitration

As noted in articles like this one from Statesman Journal, a primary issue in these matters is the conflict between two federal laws. One gives workers the right to join together in court, the other encourages arbitration as a preferred method of dispute resolution.

Whether employers could use an arbitration clause to prevent workers from banning together in class action lawsuits put a spotlight on this conflict.

Siding with businesses

In a 5-4 decision, the Supreme Court ruled that arbitration clauses are valid. In other words, employers are within their rights to prohibit non-union workers from class actions.

It is not yet known if lawmakers will attempt to change the law that led to this decision.

What this means for Minnesota employers

Determining whether to utilize arbitration clauses is not a decision that employers should make lightly. Such clauses can lead to conflict, litigation, and the shrinkage of talent in their pool of potential employees. 

However, arbitration clauses can be effective at minimizing legal expenses and expediting the process should an issue arise between an employee and an employer, so it may be something business owners might consider. Under these circumstances, it is crucial to consult an attorney who can provide guidance and help employers create valid, enforceable agreements.

No Comments

Leave a comment
Comment Information
Client Testimonials

Client Testimonials

  1. “Thank you for providing personalized professional services to us during a time of grief and loss when family relationships were not the best. With an attorney on board to help manage legal matters, everyone had confidence that the best was being done. ”

    Read More…
  2. “Our estate plan was handled well. We never felt rushed and all details were fully explained. Sam is very professional, easy to talk to and experienced in all aspects of estate planning. He gave examples and explored alternatives for us to consider. Well done and thanks.”

    Read More…
  3. “I was given the name of the law firm by a family friend after helplessly pilfering through endless names on websites. I am grateful I called. I was connected with Dave Meier immediately and from the go, was treated with dignity, care and respect. Every visit to the firm was pleasant and professional. ”

    Read More…
  4. “We were highly impressed upon the level and capability of Sjoberg & Tebelius. They gently showed us that there was much more to achieving the Will in the correct format that will protect our children than the quick attempts we had made on our own. Great people to work with - achieving our desired results!”

    Read More…

Over 30-years of experience Serving Minnesota & Western Wisconsin

Sjoberg & Tebelius, P.A.

Woodbury Office
2145 Woodlane Drive
Suite 101
Woodbury, MN 55125

Fax: 651-738-0020
Map & Directions

Minneapolis Office
900 IDS Center (By Appointment Only)
Minneapolis, MN 55402

Toll Free: 888-892-7044
Phone: 651-315-8856
Fax: 651-738-0020
Map & Directions

Map