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CLIENT ALERT: Class Action Waivers in Employment Contracts Upheld by Supreme Court

Client Alert
May 24, 2018

On May 21, 2018, in a 5-4 decision and a major win for employers, the United States Supreme Court upheld the legality of waivers in employment contracts that prohibit employees from grouping claims together in collective or class actions in favor of individual arbitration proceedings. See Epic Sys. Corp. v. Lewis, ___U.S.___ (2018).

Employers have used these collective/class action waivers to protect against collective action wage and hour claims. Employees and the National Labor Relations Board (“NLRB”) had challenged the legality of such provisions, arguing that they violate the National Labor Relations Act (the “NLRA”) prohibition against employers interfering with employees’ rights to engage in “concerted activities for the purpose of collective bargaining or other mutual aid or protection.” See 29 U.S.C. § 157.  Employers’ argued, under the Federal Arbitration Act (the “FAA”), that arbitration agreements entered into through a lawful contract must be upheld. 9 U.S.C. § 2. The United States Supreme Court resolved the conflict in favor of the FAA and employers.

Employers are encouraged to consult with their legal counsel to determine whether collective/class action waivers may be beneficial to their business or review waivers already in place to determine whether such waivers fit squarely in the United States Supreme Court’s recent decision. BMD’s employment attorneys are available for such consultation.  Should you have any questions regarding the United States Supreme Court’s decision or class/collective action waivers, please contact Adam D. Fuller at adfuller@bmdllc.com.

Labor LawNational Labor Relations BoardNational Labor Relations ActU.S. Supreme Court
Client Alert

The Ohio Board of Pharmacy’s Latest Batch of Rules: What Providers Should Know

January 15, 2024The Ohio Board of Pharmacy released several new rules and proposed amendments to existing rules over the past month that will significantly impact pharmacy operations. Topics range from updates to the Terminal Distributor of Dangerous Drugs license to mobile clinics to mandatory rest breaks for pharmacists of outpatient pharmacies. A summary of the proposed changes is below, along with instructions for commenting on the rules. Your BMD healthcare attorney can help write comment letters and submit the comments on your behalf as well.Client Alert

Employee or Independent Contractor? New Guidance Issued by the Department of Labor

January 10, 2024On January 9, 2024, the U.S. Department of Labor (DOL) issued its long-awaited final rule — effective March 11, 2024 — revising its prior interpretation of worker classifications under the federal Fair Labor Standards Act (FLSA). The new final rule rescinds the standard previously established in 2021, in turn, shifting the analysis of whether a worker is an employee (versus an independent contractor) of a business from a more streamlined “economic reality” test to a more complex “totality of the circumstances” standard.Client Alert

Increased Medicaid Rates to Take Effect This Month for Ohio Providers

January 5, 2024As required by House Bill 33, Ohio’s 2024-2025 operating budget bill, reimbursement rates paid by the Ohio Department of Medicaid will increase for a wide range of providers starting on January 1, 2024.Client Alert

Corporate Transparency Act Update

December 27, 2023The Corporate Transparency Act (“CTA”), with an effective date of January 1, 2024, is set to impose strict reporting guidelines on business owners throughout the country. The following provides a brief update on two aspects of the CTA ahead of its effectiveness next week.Client Alert

The Second Wave of UnitedHealthcare's Prior Authorization Cuts Started in November

December 11, 2023In August 2023, UnitedHealthcare released its plan to eliminate roughly one-fifth of its then-current prior authorization requirements. The first round of prior authorization cuts took effect on September 1, 2023. In that round, UnitedHealthcare eliminated the necessity for some prior authorizations for UnitedHealthcare Medicare Advantage, UnitedHealthcare commercial, UnitedHealthcare Oxford and UnitedHealthcare Individual Exchange plan members. The second and final round of prior authorization cuts began on November 1, 2023. The November 2023 Prior Authorization Cuts apply to the same plans as well as community plans (i.e., Medicaid managed care plans).
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