Ernst & Young LLP v. Morris

Questions presented

SCOTUS records, cert granted 13 Jan 2017

Whether the collective-bargaining provisions of the National Labor Relations Act prohibit the enforcement under the Federal Arbitration Act of an agreement requiring an employee to arbitrate claims against an employer on an individual, rather than collective, basis.

Opinion summary

Etalia.ai summary of the majority opinion

The case addressed whether arbitration agreements that bar employees from pursuing work-related claims collectively violate the National Labor Relations Act (NLRA). The Supreme Court ruled in favor of Ernst & Young, holding that such agreements do not infringe upon workers' rights under the NLRA. The majority opinion, delivered by Justice Gorsuch, emphasized that the Federal Arbitration Act requires courts to enforce arbitration agreements according to their terms. It concluded that Congress did not intend for Section 7 of the NLRA—which protects employees’ rights to engage in concerted activities—to override this mandate. Therefore, employers can legally require individual arbitration and prohibit class or collective actions as a condition of employment.

Dissent summary

Etalia.ai summary of the dissenting opinions

Justice Ginsburg authored a dissenting opinion joined by Justices Breyer, Sotomayor, and Kagan. She argued that prohibiting collective legal action undermines employee protections guaranteed by federal labor law and weakens enforcement mechanisms against employer misconduct. According to her view, Section 7 of the NLRA explicitly grants workers 'the right...to engage in other concerted activities for mutual aid or protection,' which includes joint legal proceedings addressing workplace issues. By allowing employers to impose mandatory individualized arbitration clauses as conditions of employment contracts without an option for group litigation or dispute resolution processes through court systems—employees are deprived access essential tools needed effectively challenge unlawful practices.