Can Employees Pursue Class Action Arbitration?

Employers have increasingly been including arbitration agreements in their contracts with their workers. These clauses require the worker to give up any right to sue their employer in court, instead of requiring them to pursue all legal disputes in arbitration, where employers have significant advantages over their workers. Because arbitration was initially designed as a way to resolve disputes between businesses, it was not set up to handle classes of plaintiffs, and as a result, most people tend to interpret arbitration clauses as automatically banning class arbitration. But a new data breach lawsuit filed against Lamps Plus alleges employees should be able to file class arbitrations, as long as the arbitration agreement does not specifically ban class arbitration. The case involves a class of workers who are attempting to sue Lamps Plus for allegedly failing to properly secure their IRS information, which was stolen in a data breach. The case went before the U.S. District…

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