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Brakes On? SCOTUS Rules on Arbitration Agreements in Employment and Transportation Contracts

Just when we thought “full steam ahead” for arbitration clauses in employment contracts, stemming from the U.S. Supreme Court’s loyal adherence to the Federal Arbitration Act (“FAA”) in Epic Systems Corp. v. Lewis, the brakes seem to have slammed on again. In January, the Supreme Court held in New Prime v. Oliveira, that the FAA does have some limitations. The earlier Epic Systems decision was seen by many as a business-friendly ruling, giving employers even greater ability to enforce arbitration agreements with their employees.

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