www.NFIB.com
For
Immediate Release
Contact:
Kelly Klass 609-713-4243 or [email protected]
Follow Kelly on Twitter @KellyKlassNFIB
Follow NFIB on Twitter @NFIB
Small Business Asks SCOTUS to Block States from Undermining
Federal Arbitration Act
The
National Federation of Independent Business (NFIB) wants the U.S. Supreme Court to hear
a case that threatens the freedom to contract
Washington,
D.C., March 27, 2015 – The National
Federation of Independent Business (NFIB) is urging the Supreme Court to prevent
states from undoing legal agreements that are binding under federal law.
“Small
businesses rely on arbitration agreements to limit their litigation cost,” NFIB Small Business Legal Center Executive
Director Karen Harned said. “Arbitration is a fair and neutral process to
resolve employment disputes without lengthy and costly court battles. The
California courts have created an exception to these contracts that undermines
the FAA.”
NFIB
yesterday filed an amicus brief asking the Supreme Court to hear the case of Bridgestone
Retail Operations LLC v Brown, at the
center of which is the question of whether an employee can sue his or her employer
in court under California’s Private Attorney General Act, even if the employee
has already agreed to arbitrate any grievances.
“Under California’s Private
Attorney General Act, employees can bring suit against their employers on
behalf of the State when they think their rights have been violated. In this case, however, the employee brought
charges against his employer even after he had agreed to arbitrate any employment
disputes,” said Harned. “That completely
undermines the purpose of Federal Arbitration Act, which was enacted as a way to
settle legal disputes without lengthy and costly court battles.
In January the US Supreme Court refused
to hear a similar case, Iskanian v. CLS
Transportation Los Angeles. NFIB Legal Center has renewed efforts to bring
the issue before the Court because it raises an issue of great concern to the
small business community.
“Binding arbitration is an important way for
employers to avoid lengthy and costly civil trials,” said Harned. “State courts should not be allowed to
invalidate arbitration agreements where the terms are perfectly clear and consistent
with federal law.”
“We
especially urge the Supreme Court to hear this case because courts in other
states across the country are also beginning to invalidate arbitration
agreements.”
For more information, visit NFIB.com.
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