Supreme Court Deals Blow to Workers' Rights in 5-4 Decision Against Collective Action

In a major blow to workers' rights, the Supreme Court ruled 5 to 4 Monday that employers can use arbitration clauses to prohibit workers from banding together to challenge violations of federal labor laws in class-action lawsuits. Arbitration is often confidential. Many workers may agree to mandatory arbitration clauses without even being aware of it when they sign a contract with their employer. In a rare show of public displeasure, Justice Ruth Bader Ginsburg read her dissent from the bench, calling the majority opinion "egregiously wrong" and saying, "The court today holds enforceable these arm-twisted, take-it-or-leave-it contracts-including the provisions requiring employees to litigate wage and hours claims only one-by-one. Federal labor law does not countenance such isolation of employees." For more, we speak with Terri Gerstein, former labor bureau chief for the New York State Attorney General's Office.