Class action waivers require claims to be arbitrated individually. The Supreme Court has held the Federal Arbitration Act preempts state rules invalidating such waivers, and has upheld them in employment and consumer contexts.
Mass individual arbitration has emerged as a response.
Alternative Names:
Class Waiver, Collective Action Waiver
Why it Matters?
Mass arbitration is the development that changed the calculus, since plaintiff firms now file thousands of individual arbitrations simultaneously, and the filing fees alone can exceed what a class action would have cost. Some companies have responded by removing waivers or adopting batching procedures. The waiver remains effective against class treatment while creating a different exposure that requires separate planning.
Frequently Confused with
Frequently asked questions
Are class action waivers enforceable?
What is mass arbitration?
