Human Resources

The Washington Report



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May 23, 2018

Legislative

Congress to Recess

The House and Senate are scheduled to recess the week of May 28, 2018, for the Memorial Day holiday. The chambers will return to the Hill the week of June 4.

Judicial

High Court Upholds Employment Arbitration Agreements Waiving Class Action Rights

On May 21, 2018, in a landmark employment law case, the U.S. Supreme Court held that arbitration agreements between employers and employees that provide for individualized arbitration proceedings are enforceable under the federal Arbitration Act (Epic Systems Corp. v. Lewis). Employees in the consolidated cases before the Supreme Court had sought to litigate claims that their employers had underpaid them in violation of the Fair Labor Standards Act and various state laws through class actions and other collective actions in federal court. However, each employee had entered into an arbitration agreement that required individualized arbitration proceedings, with claims for different employees to be heard separately, thus banning collective proceedings such as class actions. The Court rejected arguments that the Arbitration Act’s savings clause and the National Labor Relations Act prohibited enforcement of the class action waivers.

Epic Systems Corp. v. Lewis is available here.

Aon Publications

Aon Releases White Paper: An Overview of the Multiemployer Pension Plan System: Risks Facing Participating Employers and Ways to Manage Them

The multiemployer pension plan system in the U.S. is under increasing strain. The Pension Benefit Guaranty Corporation multiemployer insurance program is projected to go insolvent in less than 10 years, and many large plans are also facing insolvency. The strain on the system poses increasing risks to employers with exposure to these plans.

Aon has released a white paper addressing the multiemployer plan system, entitled “An Overview of the Multiemployer Pension Plan System: Risks Facing Participating Employers and Ways to Manage Them.” The paper discusses:

  • Multiemployer Plan Background;
  • Risks Facing Employers;
  • Ways for Employers to Monitor and Manage Risks; and
  • How Aon Can Help

The Aon white paper “An Overview of the Multiemployer Pension Plan System: Risks Facing Participating Employers and Ways to Manage Them” is available here.