Epic Systems Corp. v. Lewis

584 U.S. 497, 138 S. Ct. 1612, 200 L. Ed. 2d 889, 2018 U.S. LEXIS 3086
CourtSupreme Court of the United States
DecidedMay 21, 2018
Docket16-285
StatusPublished
Cited by890 cases

This text of 584 U.S. 497 (Epic Systems Corp. v. Lewis) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Epic Systems Corp. v. Lewis, 584 U.S. 497, 138 S. Ct. 1612, 200 L. Ed. 2d 889, 2018 U.S. LEXIS 3086 (2018).

Opinion

(Slip Opinion) OCTOBER TERM, 2017 1

Syllabus

NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

EPIC SYSTEMS CORP. v. LEWIS

CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SEVENTH CIRCUIT

No. 16–285. Argued October 2, 2017—Decided May 21, 2018* In each of these cases, an employer and employee entered into a con- tract providing for individualized arbitration proceedings to resolve employment disputes between the parties. Each employee nonethe- less sought to litigate Fair Labor Standards Act and related state law claims through class or collective actions in federal court. Although the Federal Arbitration Act generally requires courts to enforce arbi- tration agreements as written, the employees argued that its “saving clause” removes this obligation if an arbitration agreement violates some other federal law and that, by requiring individualized proceed- ings, the agreements here violated the National Labor Relations Act. The employers countered that the Arbitration Act protects agree- ments requiring arbitration from judicial interference and that nei- ther the saving clause nor the NLRA demands a different conclusion. Until recently, courts as well as the National Labor Relations Board’s general counsel agreed that such arbitration agreements are enforce- able. In 2012, however, the Board ruled that the NLRA effectively nullifies the Arbitration Act in cases like these, and since then other courts have either agreed with or deferred to the Board’s position. Held: Congress has instructed in the Arbitration Act that arbitration agreements providing for individualized proceedings must be en- forced, and neither the Arbitration Act’s saving clause nor the NLRA suggests otherwise. Pp. 5–25. —————— * Together with No. 16–300, Ernst & Young LLP et al. v. Morris et al., on certiorari to the United States Court of Appeals for the Ninth Cir- cuit, and No. 16–307, National Labor Relations Board v. Murphy Oil USA, Inc., et al., on certiorari to the United States Court of Appeals for the Fifth Circuit. 2 EPIC SYSTEMS CORP. v. LEWIS

(a) The Arbitration Act requires courts to enforce agreements to arbitrate, including the terms of arbitration the parties select. See 9 U. S. C. §§2, 3, 4. These emphatic directions would seem to resolve any argument here. The Act’s saving clause—which allows courts to refuse to enforce arbitration agreements “upon such grounds as exist at law or in equity for the revocation of any contract,” §2—recognizes only “ ‘generally applicable contract defenses, such as fraud, duress, or unconscionability,’ ” AT&T Mobility LLC v. Concepcion, 563 U. S. 333, 339, not defenses targeting arbitration either by name or by more subtle methods, such as by “interfer[ing] with fundamental at- tributes of arbitration,” id., at 344. By challenging the agreements precisely because they require individualized arbitration instead of class or collective proceedings, the employees seek to interfere with one of these fundamental attributes. Pp. 5–9. (b) The employees also mistakenly claim that, even if the Arbitra- tion Act normally requires enforcement of arbitration agreements like theirs, the NLRA overrides that guidance and renders their agreements unlawful yet. When confronted with two Acts allegedly touching on the same topic, this Court must strive “to give effect to both.” Morton v. Mancari, 417 U. S. 535, 551. To prevail, the em- ployees must show a “ ‘clear and manifest’ ” congressional intention to displace one Act with another. Ibid. There is a “stron[g] pre- sum[ption]” that disfavors repeals by implication and that “Congress will specifically address” preexisting law before suspending the law’s normal operations in a later statute. United States v. Fausto, 484 U. S. 439, 452, 453. The employees ask the Court to infer that class and collective ac- tions are “concerted activities” protected by §7 of the NLRA, which guarantees employees “the right to self-organization, to form, join, or assist labor organizations, to bargain collectively . . . , and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection,” 29 U. S. C. §157. But §7 focuses on the right to organize unions and bargain collectively. It does not mention class or collective action procedures or even hint at a clear and manifest wish to displace the Arbitration Act. It is unlikely that Congress wished to confer a right to class or collective actions in §7, since those procedures were hardly known when the NLRA was adopted in 1935. Because the catchall term “other concerted activi- ties for the purpose of . . . other mutual aid or protection” appears at the end of a detailed list of activities, it should be understood to pro- tect the same kind of things, i.e., things employees do for themselves in the course of exercising their right to free association in the work- place. The NLRA’s structure points to the same conclusion. After speak- Cite as: 584 U. S. ____ (2018) 3

ing of various “concerted activities” in §7, the statute establishes a detailed regulatory regime applicable to each item on the list, but gives no hint about what rules should govern the adjudication of class or collective actions in court or arbitration. Nor is it at all obvious what rules should govern on such essential issues as opt-out and opt- in procedures, notice to class members, and class certification stand- ards. Telling too is the fact that Congress has shown that it knows exactly how to specify certain dispute resolution procedures, cf., e.g., 29 U. S. C. §§216(b), 626, or to override the Arbitration Act, see, e.g., 15 U. S. C. §1226(a)(2), but Congress has done nothing like that in the NLRA. The employees suggest that the NLRA does not discuss class and collective action procedures because it means to confer a right to use existing procedures provided by statute or rule, but the NLRA does not say even that much. And if employees do take existing rules as they find them, they must take them subject to those rules’ inherent limitations, including the principle that parties may depart from them in favor of individualized arbitration. In another contextual clue, the employees’ underlying causes of ac- tion arise not under the NLRA but under the Fair Labor Standards Act, which permits the sort of collective action the employees wish to pursue here. Yet they do not suggest that the FLSA displaces the Arbitration Act, presumably because the Court has held that an iden- tical collective action scheme does not prohibit individualized arbitra- tion proceedings, see Gilmer v. Interstate/Johnson Lane Corp., 500 U. S. 20, 32. The employees’ theory also runs afoul of the rule that Congress “does not alter the fundamental details of a regulatory scheme in vague terms or ancillary provisions,” Whitman v. American Trucking Assns., Inc., 531 U. S.

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Bluebook (online)
584 U.S. 497, 138 S. Ct. 1612, 200 L. Ed. 2d 889, 2018 U.S. LEXIS 3086, Counsel Stack Legal Research, https://law.counselstack.com/opinion/epic-systems-corp-v-lewis-scotus-2018.