Update: Supreme Court Denies Cert in 11th Cir. FLSA Case Upholding Class Waivers in Arbitration Agreement
July 16, 2014
July 15, 2014
On June 30, 2014, the United States Supreme Court denied a petition for certiorari in Walthour v. Chipio Windshield Repair (see below).
The Eleventh Circuit decision therefore stands, and there is no current split among circuits, as every federal appeals court to address the issue (the Second, Eighth, Fifth, Fourth and 11th Circuits) has rejected the argument that the Fair Labor Standards Act (FLSA) makes collective action a substantive right and overrides the FAA mandate to enforce arbitration clauses.
March 27, 2014
The Eleventh Circuit has joined four other federal circuit courts in rejecting the NLRB’s position that the Fair Labor Standards Act (FLSA) makes collective action a substantive right and overrides the FAA mandate to enforce arbitration clauses. federal labor laws prohibit class action waivers in arbitration clauses. In Walthour v. Chipio Windshield Repair, LLC, 2014 WL 1099286 (11th Cir., March 21, 2014), the appellate court affirmed the district court’s order that minimum wage and overtime claims be arbitrate individually, upholding language in the employer-employee arbitration agreements whereby parties expressly waived the right “to participate in a class action . . . . “
Noting that the Second, Eighth, Fifth, and Fourth Circuits had already rejected the NLRB’s “substantive right” argument (most notably in D.R. Horton, discussed here), the court reasoned that neither the language of the FLSA nor the legislative history indicated clear congressional intent that it override the FAA.