Though arbitration and class-action waiver agreements can be a helpful tool in defending against employment-based litigation, employers must stay abreast of recent legislation and case law trends, says G&A Partners chief legal officer Stephen Calvert in the May PEO Insider.

In the article “Stay Informed: Recent Legal Developments May Impact Employers’ Use of Arbitration in Employment Claims,” Calvert reviews recent court rulings in California and New York that upheld the use of arbitration and class-action waiver agreements.

However, rulings regarding arbitration in Employment Retirement Income Security Act (ERISA) claims has been more divided.

“The enforceability of arbitration and class-action waiver agreements in ERISA claims is less certain following competing rulings on their use in various circuit courts recently,” writes Calvert. “ … It seems the Supreme Court will have to wade into this area to clarify enforceability parameters soon.”

Tracking rulings and recent legal developments is critical for employers who use arbitration and class-action waiver agreements, so that they can successfully enforce these agreements, says Calvert.

Read the full article here.