U.S. Supreme Court Hears ‘Arbitration v. Individual Claims’ Case with Potential Huge Impact on Future FLSA Cases – Los Angeles Wage & Hour Claims Attorneys Blumenthal, Nordrehaug & Bhowmik

by Norman B. Blumenthal on March 25, 2013

aw-post-3The U.S. Supreme Court recently heard arguments in an antitrust case which could have a potential huge impact on future cases filed under Fair Labor Standards Act (FLSA).  In American Express Co. v. Italian Colors Restaurant the high court justices are deciding if a clause to arbitrate all disputes on an individual basis, with no “class arbitration” is enforceable.  Italian Colors Restaurant’s argument that if it can’t pursue its claim as part of a class action or class arbitration it will economically be prohibited from pursuing the claim at all is often argued by plaintiffs in FLSA cases.

After oral arguments, court watchers felt the Supreme Court Justices were conflicted about the enforceability of American Express’s arbitration agreement.   Justices Kagan and Ginsburg seemed to side with the defendant.  Justices Breyer, Kennedy and Roberts seemed to side with the plaintiff.  Justice Scalia was concerned about establishing a rule that would require a judge to assess the costs and benefits of pursuing each particular claim before enforcing an arbitration agreement, and Justice Thomas was silent.  Justice Sotomayor recused herself from the case.

If you have an overtime pay claim that needs proper adjudication, call an experienced Los Angeles labor attorney today at Blumenthal, Nordrehaug & Bhowmik at (310) 981-3918.  Blumenthal, Nordrehaug & Bhowmik is a California employment law firm with offices located in San Diego, San Francisco and Los Angeles. The firm dedicates its practice to contingency fee employment law work for issues involving misclassification as a salaried worker exempt from overtime, failure to pay vacation wages, misclassification as an independent contractor, off-the-clock work, wrongful termination, discrimination and other California labor laws.

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