Nearly four years ago, the U.S. Supreme Court held employers can enforce arbitration agreements that waive an employee’s right to join a class action lawsuit. Since then, many companies have avoided what would be costly class action lawsuits, particularly in the wage and hour context, by requiring individual arbitration with employees. Despite this, there was often a gap for joint employers, specifically those companies that use staffing agencies to perform some type of labor. Now, a federal appeals court has made the loophole smaller.
