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class action waivers

Class action waivers are provisions in an arbitration agreement or other contract or agreement in which one party (e.g., the employee) waives the right to file a class action lawsuit against the other party (e.g., the employer).

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Any potential recourse is thereby restricted to individual legal action. The validity of class action waivers under the Federal Arbitration Act (FAA) and the National Labor Relations Act (NLRA) has been upheld by the Supreme Court as recently as 2018, in a decision that thereby mitigates employment practices liability (EPL) and benefits employers.

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