EPIC SYSTEMS CORP. v. LEWIS
No. 16-285
SUPREME COURT OF THE UNITED STATES
May 21, 2018
584 U. S. ____ (2018)
Argued October 2, 2017
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
Syllabus
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*
Held: Congress has instructed in the Arbitration Act that arbitration agreements providing for individualized proceedings must be enforced, and neither the Arbitration Act‘s saving clause nor the NLRA suggests otherwise. Pp. 5-25.
Syllabus
(a) The Arbitration Act requires courts to enforce agreements to arbitrate, including the terms of arbitration the parties select. See
(b) The employees also mistakenly claim that, even if the Arbitration 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 employees must show a ““clear and manifest‘” congressional intention to displace one Act with another. Ibid. There is a “stron[g] presum[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 actions 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,”
The NLRA‘s structure points to the same conclusion. After speak-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 standards. Telling too is the fact that Congress has shown that it knows exactly how to specify certain dispute resolution procedures, cf., e.g.,
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 action 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 identical collective action scheme does not prohibit individualized arbitration 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. 457, 468, as it would allow a catchall term in the NLRA to dictate the particulars of dispute resolution procedures in Article III courts or arbitration proceedings-matters that are usually left to, e.g., the Federal Rules of Civil Procedure, the
Precedent confirms the Court‘s reading. The Court has rejected many efforts to manufacture conflicts between the Arbitration Act and other federal statutes, see, e.g. American Express Co. v. Italian Colors Restaurant, 570 U. S. 228; and its §7 cases have generally involved efforts related to organizing and collective bargaining in the workplace, not the treatment of class or collective action procedures in court or arbitration, see, e.g., NLRB v. Washington Aluminum Co., 370 U. S. 9.
Finally, the employees cannot expect deference under Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837, because Chevron‘s essential premises are missing. The Board sought not to interpret just the NLRA, “which it administers,” id., at 842, but to interpret that statute in a way that limits the work of the Arbitration Act, which the agency does not administer. The Board and the Solicitor General also dispute the NLRA‘s meaning, articulating no single position on which the Executive Branch might be held “accountable to the people.” Id., at 865. And after “employing traditional tools of statutory construction,” id., at 843, n. 9, including the canon against reading conflicts into statutes, there is no unresolved ambiguity for the Board to address. Pp. 9-21.
No. 16-285, 823 F. 3d 1147, and No. 16-300, 834 F. 3d 975, reversed and remanded; No. 16-307, 808 F. 3d 1013, affirmed.
GORSUCH, J., delivered the opinion of the Court, in which ROBERTS, C. J., and KENNEDY, THOMAS, and ALITO, JJ., joined. THOMAS, J., filed a concurring opinion. GINSBURG, J., filed a dissenting opinion, in which BREYER, SOTOMAYOR, and KAGAN, JJ., joined.
Opinion of the Court
NOTICE: This opinion is subject to formal
SUPREME COURT OF THE UNITED STATES
Nos. 16-285, 16-300, 16-307
EPIC SYSTEMS CORPORATION, PETITIONER
16-285 v. JACOB LEWIS;
ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SEVENTH CIRCUIT
ERNST & YOUNG LLP, ET AL., PETITIONERS
16-300 v. STEPHEN MORRIS, ET AL.; AND
ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
NATIONAL LABOR RELATIONS BOARD, PETITIONER
16-307 v. MURPHY OIL USA, INC., ET AL.
ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT
[May 21, 2018]
JUSTICE GORSUCH delivered the opinion of the Court.
Should employees and employers be allowed to agree that any disputes between them will be resolved through one-on-one arbitration? Or should employees always be permitted to bring their claims in class or collective actions, no matter what they agreed with their employers?
Opinion of the Court
As a matter of policy these questions are surely debatable. But as a matter of law the answer is clear. In the Federal Arbitration Act, Congress has instructed federal courts to enforce arbitration agreements according to their terms-including terms providing for individualized proceedings. Nor can we agree with the employees’ suggestion that the National Labor Relations Act (NLRA) offers a conflicting command. It is this Court‘s duty to interpret Congress‘s statutes as a harmonious whole rather than at war with one another. And abiding that duty here leads to an unmistakable conclusion. The NLRA secures to employees rights to organize unions and bargain collectively, but it says nothing about how judges and arbitrators must try legal disputes that leave the workplace and enter the courtroom or arbitral forum. This Court has never read a right to class actions into the NLRA-and for three quarters of a century neither did the National Labor Relations Board. Far from conflicting, the Arbitration Act and the NLRA have long enjoyed separate spheres of influence and neither permits this Court to declare the parties’ agreements unlawful.
I
The three cases before us differ in detail but not in substance. Take Ernst & Young LLP v. Morris. There Ernst & Young and one of its junior accountants, Stephen Morris, entered into an agreement providing that they would arbitrate any disputes that might arise between them. The agreement stated that the employee could choose the arbitration provider and that the arbitrator could “grant any relief that could be granted by ... a court” in the relevant jurisdiction. App. in
After his employment ended, and despite having agreed to arbitrate claims against the firm, Mr. Morris sued Ernst & Young in federal court. He alleged that the firm had misclassified its junior accountants as professional employees and violated the federal Fair Labor Standards Act (FLSA) and California law by paying them salaries without overtime pay. Although the arbitration agreement provided for individualized proceedings, Mr. Morris sought to litigate the federal claim on behalf of a nationwide class under the FLSA‘s collective action provision,
Ernst & Young replied with a motion to compel arbitration. The district court granted the request, but the Ninth Circuit reversed this judgment. 834 F. 3d 975 (2016). The Ninth Circuit recognized that the Arbitration Act generally requires courts to enforce arbitration agreements as written. But the court reasoned that the statute‘s “saving clause,” see
Judge Ikuta dissented. In her view, the Arbitration Act protected the arbitration agreement from judicial interference and nothing in the Act‘s saving clause suggested otherwise. Neither, she concluded, did the NLRA demand a different result. Rather, that statute focuses on protecting unionization and collective bargaining in the workplace, not on guaranteeing class or collective action procedures in disputes before judges or arbitrators.
Although the Arbitration Act and the NLRA have long coexisted-they date from 1925 and 1935, respectively-the suggestion they might conflict is something quite new. Until a couple of years ago, courts more or less agreed that arbitration agreements like those before us must be enforced according to their terms. See, e.g., Owen v. Bristol Care, Inc., 702 F. 3d 1050 (CA8 2013); Sutherland v. Ernst & Young LLP, 726 F. 3d 290 (CA2 2013); D. R. Horton, Inc. v. NLRB, 737 F. 3d 344 (CA5 2013); Iskanian v. CLS Transp. Los Angeles, LLC, 59 Cal. 4th 348, 327 P. 3d 129 (2014); Tallman v. Eighth Jud. Dist. Court, 131 Nev. 71, 359 P. 3d 113 (2015); 808 F. 3d 1013 (CA5 2015) (case below in No. 16-307).
The National Labor Relations Board‘s general counsel expressed much the same view in 2010. Remarking that employees and employers “can benefit from the relative simplicity and informality of resolving claims before arbitrators,” the general counsel opined that the validity of such agreements “does not involve consideration of the policies of the National Labor Relations Act.” Memorandum GC 10-06, pp. 2, 5 (June 16, 2010).
But recently things have shifted. In 2012, the Board-for the first time in the 77 years since the NLRA‘s adoption-asserted that the NLRA effectively nullifies the Arbitration Act in cases like ours. D. R. Horton, Inc., 357 N. L. R. B. 2277. Initially, this agency decision received a cool reception in court. See D. R. Horton, 737 F. 3d, at 355-362. In the last two years, though, some circuits have either agreed with the Board‘s conclusion or
Opinion of the Court
II
We begin with the Arbitration Act and the question of its saving clause.
Congress adopted the Arbitration Act in 1925 in response to a perception that courts were unduly hostile to arbitration. No doubt there was much to that perception. Before 1925, English and American common law courts routinely refused to enforce agreements to arbitrate disputes. Scherk v. Alberto-Culver Co., 417 U. S. 506, 510, n. 4 (1974). But in Congress‘s judgment arbitration had more to offer than courts recognized-not least the promise of quicker, more informal, and often cheaper resolutions for everyone involved. Id., at 511. So Congress directed courts to abandon their hostility and instead treat arbitration agreements as “valid, irrevocable, and enforceable.”
Not only did Congress require courts to respect and enforce agreements to arbitrate; it also specifically directed them to respect and enforce the parties’ chosen arbitration procedures. See
On first blush, these emphatic directions would seem to resolve any argument under the Arbitration Act. The parties before us contracted for arbitration. They proceeded to specify the rules that would govern their arbitrations, indicating their intention to use individualized rather than class or collective action procedures. And this much the Arbitration Act seems to protect pretty absolutely. See AT&T Mobility LLC v. Concepcion, 563 U. S. 333 (2011); Italian Colors, supra; DIRECTV, Inc. v. Imburgia, 577 U. S. ___ (2015). You might wonder if the balance Congress struck in 1925 between arbitration
Still, the employees suggest the Arbitration Act‘s saving clause creates an exception for cases like theirs. By its terms, the saving clause allows courts to refuse to enforce arbitration agreements “upon such grounds as exist at law or in equity for the revocation of any contract.”
The problem with this line of argument is fundamental. Put to the side the question whether the saving clause was designed to save not only state law defenses but also defenses allegedly arising from federal statutes. See 834 F. 3d, at 991-992, 997 (Ikuta, J., dissenting). Put to the side the question of what it takes to qualify as a ground for “revocation” of a contract. See Concepcion, supra, at 352-355 (THOMAS, J., concurring); post, at 1-2 (THOMAS, J., concurring). Put to the side for the moment, too, even the question whether the NLRA actually renders class and collective action waivers illegal. Assuming (but not granting) the employees could satisfactorily answer all those questions, the saving clause still can‘t save their cause.
It can‘t because the saving clause recognizes only defenses that apply to “any” contract. In this way the clause establishes a sort of “equal-treatment” rule for arbitration contracts. Kindred Nursing Centers L. P. v. Clark, 581 U. S. ___ (2017) (slip op., at 4). The clause “permits agreements to arbitrate to be invalidated by ‘generally applicable contract defenses, such as fraud, duress, or unconscionability.‘” Concepcion, 563 U. S., at 339. At the same time, the clause offers no refuge for “defenses that apply only to arbitration or that derive their meaning from the fact that an agreement to arbitrate is at issue.” Ibid. Under our precedent, this means the saving clause does not save defenses that target arbitration either by name or by more subtle methods, such as by “interfer[ing] with fundamental attributes of arbitration.” Id., at 344; see Kindred Nursing, supra, at ___ (slip op., at 5).
This is where the employees’ argument stumbles. They don‘t suggest that their arbitration agreements were extracted, say, by an act of fraud or duress or in some other unconscionable way that would render any contract unenforceable. Instead, they object to their agreements precisely because they require individualized arbitration proceedings instead of class or collective ones. And by attacking (only) the individualized nature of the arbitration proceedings, the employees’ argument seeks to interfere with one of arbitration‘s fundamental attributes.
We know this much because of Concepcion. There this Court faced a state law defense that prohibited as uncon-scionable class action waivers in consumer contracts. The Court readily acknowledged that the defense formally applied in both the litigation and the arbitration context. 563 U. S., at 338, 341. But, the Court held, the defense failed to qualify for protection under the saving clause because it interfered with a fundamental attribute of arbitration all the same. It
Of course, Concepcion has its limits. The Court recognized that parties remain free to alter arbitration procedures to suit their tastes, and in recent years some parties have sometimes chosen to arbitrate on a classwide basis. Id., at 351. But Concepcion‘s essential insight remains: courts may not allow a contract defense to reshape traditional individualized arbitration by mandating classwide arbitration procedures without the parties’ consent. Id., at 344-351; see also Stolt-Nielsen S. A. v. AnimalFeeds Int‘l Corp., 559 U. S. 662, 684-687 (2010). Just as judicial antagonism toward arbitration before the Arbitration Act‘s enactment “manifested itself in a great variety of devices and formulas declaring arbitration against public policy,” Concepcion teaches that we must be alert to new devices and formulas that would achieve much the same result today. 563 U. S., at 342 (internal quotation marks omitted). And a rule seeking to declare individualized arbitration proceedings off limits is, the Court held, just such a device.
The employees’ efforts to distinguish Concepcion fall short. They note that their putative NLRA defense would render an agreement “illegal” as a matter of federal statutory law rather than “unconscionable” as a matter of state common law. But we don‘t see how that distinction makes any difference in light of Concepion‘s rationale and rule. Illegality, like unconscionability, may be a traditional, generally applicable contract defense in many cases, including arbitration cases. But an argument that a contract is unenforceable just because it requires bilateral arbitration is a different creature. A defense of that kind, Concepcion tells us, is one that impermissibly disfavors arbitration whether it sounds in illegality or unconscionability. The law of precedent teaches that like cases should generally be treated alike, and appropriate respect for that principle means the Arbitration Act‘s saving clause can no more save the defense at issue in these cases than it did the defense at issue in Concepcion. At the end of our encounter with the Arbitration Act, then, it appears just as it did at the beginning: a congressional command requiring us to enforce, not override, the terms of the arbitration agreements before us.
III
But that‘s not the end of it. Even if the Arbitration Act normally requires us to
This argument faces a stout uphill climb. When confronted with two Acts of Congress allegedly touching on the same topic, this Court is not at “liberty to pick and choose among congressional enactments” and must instead strive “to give effect to both.” Morton v. Mancari, 417 U. S. 535, 551 (1974). A party seeking to suggest that two statutes cannot be harmonized, and that one displaces the other, bears the heavy burden of showing “a clearly expressed congressional intention” that such a result should follow. Vimar Seguros y Reaseguros, S. A. v. M/V Sky Reefer, 515 U. S. 528, 533 (1995). The intention must be ““clear and manifest.” Morton, supra, at 551. And in approaching a claimed conflict, we come armed with the “stron[g] presum[ption]” that repeals by implication are “disfavored” and that “Congress will specifically address” preexisting law when it wishes to suspend its normal operations in a later statute. United States v. Fausto, 484 U. S. 439, 452, 453 (1988).
These rules exist for good reasons. Respect for Congress as drafter counsels against too easily finding irreconcilable conflicts in its work. More than that, respect for the separation of powers counsels restraint. Allowing judges to pick and choose between statutes risks transforming them from expounders of what the law is into policymakers choosing what the law should be. Our rules aiming for harmony over conflict in statutory interpretation grow from an appreciation that it‘s the job of Congress by legislation, not this Court by supposition, both to write the laws and to repeal them.
Seeking to demonstrate an irreconcilable statutory conflict even in light of these demanding standards, the employees point to Section 7 of the NLRA. That provision guarantees workers “the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.”
From this language, the employees ask us to infer a clear and manifest congressional command to displace the Arbitration Act and outlaw agreements like theirs.
But that much inference is more than this Court may make. Section 7 focuses on the right to organize unions and bargain collectively. It may permit unions to bargain to prohibit arbitration. Cf. 14 Penn Plaza LLC v. Pyett, 556 U. S. 247, 256-260 (2009). But it does not express approval or disapproval of arbitration. It does not mention class or collective action procedures. It does not even hint at a wish to displace the Arbitration Act-let alone accomplish that much clearly and manifestly, as our precedents demand.
Neither should any of this come as a surprise. The notion that Section 7 confers a right to class or collective actions seems pretty unlikely when you recall that procedures like that were hardly known when the NLRA was adopted in 1935.
A close look at the employees’ best evidence of a potential conflict turns out to reveal no conflict at all. The employees direct our attention to the term “other concerted activities for the purpose of ... other mutual aid or protection.” This catchall term, they say, can be read to include class and collective legal actions. But the term appears at the end of a detailed list of activities speaking of “self-organization,” “form[ing], join[ing], or assist[ing] labor organizations,” and “bargain[ing] collectively.”
The NLRA‘s broader structure underscores the point. After speaking of various “concerted activities” in Section 7, Congress proceeded to establish a regulatory regime applicable to each of them. The NLRA provides rules for the recognition of exclusive bargaining representatives,
Telling, too, is the fact that when Congress wants to mandate particular dispute resolution procedures it knows exactly how to do so. Congress has spoken often and clearly to the procedures for resolving “actions,” “claims,” “charges,” and “cases” in statute after statute. E.g.,
In response, the employees offer this slight reply. They suggest that the NLRA doesn‘t discuss any particular class and collective action procedures because it merely confers a right to use existing procedures provided by statute or rule, “on the same terms as [they are] made available to everyone else.” Brief for Respondent in No. 16-285, p. 53, n. 10. But of course the NLRA doesn‘t say even that much. And, besides, if the parties really take existing class and collective action rules as they find them, they surely take them subject to the limitations inherent in those rules-including the principle that parties may (as here) contract to depart from them in favor of individualized arbitration procedures of their own design.
Still another contextual clue yields the same message. The employees’ underlying causes of action involve their wages and arise not under the NLRA but under an entirely different statute, the Fair Labor Standards Act. The FLSA allows employees to sue on behalf of “themselves and other employees similarly situated,”
Perhaps worse still, the employees’ theory runs afoul of the usual rule that Congress “does not alter the fundamental
Nor does it help to fold yet another statute into the mix. At points, the employees suggest that the Norris-LaGuardia Act, a precursor of the NLRA, also renders their arbitration agreements unenforceable. But the Norris-LaGuardia Act adds nothing here. It declares “[un]enforceable” contracts that conflict with its policy of protecting workers’ “concerted activities for the purpose of collective bargaining or other mutual aid or protection.”
What all these textual and contextual clues indicate, our precedents confirm. In many cases over many years, this Court has heard and rejected efforts to conjure conflicts between the Arbitration Act and other federal statutes. In fact, this Court has rejected every such effort to date (save one temporary exception since overruled), with statutes ranging from the Sherman and Clayton Acts to the Age Discrimination in Employment Act, the Credit Repair Organizations Act, the Securities Act of 1933, the Securities Exchange Act of 1934, and the Racketeer Influenced and Corrupt Organizations Act. Italian Colors, 570 U. S. 228; Gilmer, 500 U. S. 20; CompuCredit Corp. v. Greenwood, 565 U. S. 95 (2012); Rodriguez de Quijas v. Shearson/American Express, Inc., 490 U. S. 477 (1989) (overruling Wilko v. Swan, 346 U.S. 427 (1953)); Shearson/American Express Inc. v. McMahon, 482 U. S. 220 (1987). Throughout, we have made clear that even a statute‘s express provision for collective legal actions does not necessarily mean that it precludes “individual attempts at conciliation” through arbitration. Gilmer, supra, at 32. And we‘ve stressed that the absence of any specific statutory discussion of arbitration or class actions is an important and telling clue that Congress has not displaced the Arbitration Act. CompuCredit, supra, at 103-104; McMahon, supra, at 227; Italian Colors, supra,
at 234. Given so much precedent pointing so strongly in one direction, we do not see how we might faithfully turn the other way here.
Consider a few examples. In Italian Colors, this Court refused to find a conflict between the
The employees rejoin that our precedential story is complicated by some of this Court‘s cases interpreting
That leaves the employees to try to make something of our dicta. The employees point to a line in Eastex observing that “it has been held” by other courts and the Board “that the ‘mutual aid or protection’ clause protects employees from retaliation by their employers when they seek to improve working conditions through resort to administrative and judicial forums.” 437 U. S., at 565-566; see also Brief for National Labor Relations Board in No. 16-307, p. 15 (citing similar Board decisions). But even on its own
With so much against them in the statute and our precedent, the employees end by seeking shelter in Chevron. Even if this Court doesn‘t see what they see in
The Chevron Court justified deference on the premise that a statutory ambiguity represents an “implicit” delegation to an agency to interpret a “statute which it administers.” 467 U. S., at 841, 844. Here, though, the Board hasn‘t just sought to interpret its statute, the
It‘s easy, too, to see why the “reconciliation” of distinct statutory regimes “is a matter for the courts,” not agencies. Gordon v. New York Stock Exchange, Inc., 422 U.S. 659, 685-686 (1975). An agency eager to advance its statutory mission, but without any particular interest in or expertise with a second statute, might (as here) seek to diminish the second statute‘s scope in favor of a more expansive interpretation of its own—effectively ““bootstrap[ping] itself into an area in which it has no jurisdiction.“” Adams Fruit Co. v. Barrett, 494 U.S. 638, 650 (1990). All of which threatens to undo rather than honor legislative intentions. To preserve the balance Congress struck in its statutes, courts must exercise independent interpretive judgment. See Hoffman Plastic Compounds, Inc. v. NLRB, 535 U.S. 137, 144 (2002) (noting that this Court has “never deferred to the Board‘s remedial preferences where such preferences potentially trench upon federal statutes and policies unrelated to the
Finally, the Chevron Court explained that deference is not due unless a “court, employing traditional tools of statutory construction,” is left with an unresolved ambiguity. 467 U. S., at 843, n. 9. And that too is missing: the canon against reading conflicts into statutes is a traditional tool of statutory construction and it, along with the other traditional canons we have discussed, is more than up to the job of solving today‘s interpretive puzzle. Where, as here, the canons supply an answer, ”Chevron leaves the stage.” Alternative Entertainment, 858 F. 3d, at 417 (opinion of Sutton, J.).
IV
The dissent sees things a little bit differently. In its view, today‘s decision ushers us back to the Lochner era when this Court regularly overrode legislative policy judgments. The dissent even suggests we have resurrected the long-dead “yellow dog” contract. Post, at 3-17, 30 (opinion of GINSBURG, J.). But like most apocalyptic warnings, this one proves a false alarm. Cf. L. Tribe, American Constitutional Law 435 (1978) (“‘Lochnerizing’ has become so much an epithet that the very use of the label may obscure attempts at understanding“).
Our decision does nothing to override Congress‘s policy judgments. As the dissent recognizes, the legislative policy embodied in the
Instead of overriding Congress‘s policy judgments, today‘s decision seeks to honor them. This much the dissent surely knows. Shortly after invoking the specter of Lochner, it turns around and criticizes the Court for trying too hard to abide the
When at last it reaches the question of applying our precedent, the dissent offers little, and understandably so. Our precedent clearly teaches that a contract defense “conditioning the enforceability of certain arbitration agreements on the availability of classwide arbitration procedures” is inconsistent with the
Nor is the dissent‘s reading of the
Nor do the problems end there. The dissent proceeds to argue that its expansive reading of the
Ultimately, the dissent retreats to policy arguments. It argues that we should read a class and collective action right into the
The policy may be debatable but the law is clear: Congress has instructed that arbitration agreements like those before us must be enforced as written. While Congress is of course always free to amend this judgment, we see nothing suggesting it did so in the
So ordered.
JUSTICE THOMAS, concurring.
I join the Court‘s opinion in full. I write separately to add that the employees also cannot prevail under the plain meaning of the
JUSTICE GINSBURG, with whom JUSTICE BREYER, JUSTICE SOTOMAYOR, and JUSTICE KAGAN join, dissenting.
The employees in these cases complain that their employers have underpaid them in violation of the wage and hours prescriptions of the
In the
To explain why the Court‘s decision is egregiously wrong, I first refer to the extreme imbalance once prevalent in our Nation‘s workplaces, and Congress’ aim in the
I
It was once the dominant view of this Court that “[t]he right of a person to sell
The
A
The end of the 19th century and beginning of the 20th was a tumultuous era in the history of our Nation‘s labor relations. Under economic conditions then prevailing, workers often had to accept employment on whatever terms employers dictated. See 75 Cong. Rec. 4502 (1932). Aiming to secure better pay, shorter workdays, and safer workplaces, workers increasingly sought to band together to make their demands effective. See ibid.; H. Millis & E. Brown, From the Wagner Act to Taft-Hartley: A Study of National Labor Policy and Labor Relations 7-8 (1950).
Employers, in turn, engaged in a variety of tactics to hinder workers’ efforts to act in concert for their mutual benefit. See J. Seidman, The Yellow Dog Contract 11 (1932). Notable among such devices was the “yellow-dog contract.” Such agreements, which employers required employees to sign as a condition of employment, typically commanded employees to abstain from joining labor unions. See id., at 11, 56. Many of the employer-designed agreements cast an even wider net, “proscrib[ing] all manner of concerted activities.” Finkin, The Meaning and Contemporary Vitality of the Norris-LaGuardia Act, 93 Neb. L. Rev. 6, 16 (2014); see Seidman, supra, at 59-60, 65-66. As a prominent United States Senator observed, contracts of the yellow-dog genre rendered the “laboring man . . . absolutely helpless” by “waiv[ing] his right . . . to free association” and by requiring that he “singly present any grievance he has.” 75 Cong. Rec. 4504 (remarks of Sen. Norris).
Early legislative efforts to protect workers’ rights to band together were unvailing. See, e.g., Coppage, 236 U. S., at 26; Frankfurter & Greene, Legislation Affecting Labor Injunctions, 38 Yale L. J. 879, 889-890 (1929). Courts, including this one, invalidated the legislation based on then-ascendant notions about employers’ and employees’ constitutional right to “liberty of contract.” See Coppage, 236 U. S., at 26; Frankfurter & Greene, supra, at 890-891. While stating that legislatures could curtail contractual “liberty” in the interest of public health, safety, and the general welfare, courts placed outside those bounds legislative action to redress the bargaining power imbalance workers faced. See Coppage, 236 U. S., at 16-19.
In the 1930‘s, legislative efforts to safeguard vulnerable workers found more receptive audiences. As the Great Depression shifted political winds further in favor of worker-protective laws, Congress passed two statutes aimed at protecting
“Whereas . . . the individual unorganized worker is commonly helpless to exercise actual liberty of contract and to protect his freedom of labor, . . . it is necessary that he have full freedom of association, self-organization, and designation of representatives of his own choosing, . . . and that he shall be free from the interference, restraint, or coercion of employers . . . in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.”
29 U. S. C. §102 .
certed action by employees, the
But Congress did so three years later, in 1935, when it enacted the
Unlike earlier legislative efforts, the
B
Despite the
In resisting enforcement of the group-action foreclosures, the employees involved in this litigation do not urge
that they must have access to a judicial forum.4 They argue only that the
C
Although the
Suits to enforce workplace rights collectively fit comfortably under the umbrella “concerted activities for the purpose of . . . mutual aid or protection.”
Recognizing employees’ right to engage in collective employment litigation and shielding that right from employer blockage are firmly rooted in the
Since the Act‘s earliest days, the Board and federal courts have understood
pate in concerted appeals to the media, e.g., NLRB v. Peter Cailler Kohler Swiss Chocolates Co., 130 F. 2d 503, 505-506 (CA2 1942), legislative bodies, e.g., Bethlehem Shipbuilding Corp. v. NLRB, 114 F. 2d 930, 937 (CA1 1940), and government agencies, e.g., Moss Planing Mill Co., 103 N. L. R. B. 414, 418-419, enfd, 206 F. 2d 557 (CA4 1953). “The 74th Congress,” this Court has noted, “knew well enough that labor‘s cause often is advanced on fronts other than collective bargaining and grievance settlement within the immediate employment context.” Eastex, 437 U. S., at 565.
Crucially important here, for over 75 years, the Board has held that the
D
In face of the
1
The Court relies principally on the ejusdem generis canon. See ante, at 12. Observing that
2
In search of a statutory hook to support its application of the ejusdem generis canon, the Court turns to the
This argument is conspicuously flawed. When Congress enacted the
Without much in the original Act to support its “structure” argument, the Court cites several provisions that Congress added later, in response to particular concerns. Compare
But even if each of the provisions the Court cites had been included in the original Act, they still would provide little support for the Court‘s conclusion. For going on 80 years now, the Board and federal courts—including this one—have understood
3
In a related argument, the Court maintains that the
To the employees’ argument, the Court replies: If the employees “really take existing class and collective action rules as they find them, they surely take them subject to the limitations inherent in those rules—including the principle that parties may (as here) contract to depart from them in favor of individualized arbitration procedures.” Ante, at 14. The freedom to depart asserted by the Court, as already underscored, is entirely one sided. See supra, at 2-5. Once again, the Court ignores the reality that sparked the
4
Further attempting to sow doubt about
First, one may ask, is there any reason to suppose that Congress intended to protect employees’ right to act in concert using only those procedures and forums available in 1935? Congress framed
Moreover, the Court paints an ahistorical picture. As Judge Wood, writing for the Seventh Circuit, cogently explained,
E
Because I would hold that employees’
II
Today‘s decision rests largely on the Court‘s finding in the
A
1
Prior to 1925, American courts routinely declined to order specific performance of arbitration agreements. See Cohen & Dayton, The New Federal Arbitration Law, 12 Va. L. Rev. 265, 270 (1926). Growing backlogs in the courts, which delayed the resolution of commercial disputes, prompted the business community to seek legislation enabling merchants to enter into binding arbitration agreements. See id., at 265. The business community‘s aim was to secure to merchants an expeditious, economical means of resolving their disputes. See ibid. The American Bar Association‘s Committee on Commerce, Trade and Commercial Law took up the reins in 1921, drafting the legislation Congress enacted, with relatively few changes, four years later. See Committee on Commerce, Trade & Commercial Law, The United States Arbitration Law and Its Application, 11 A. B. A. J. 153 (1925).
The legislative hearings and debate leading up to the
The
Congress, it bears repetition, envisioned application of the
2
In recent decades, this Court has veered away from Congress’ intent simply to afford merchants a speedy and economical means of resolving commercial disputes. See Sternlight, Panacea or Corporate Tool?: Debunking the Supreme Court‘s Preference for Binding Arbitration, 74
Employers have availed themselves of the opportunity opened by court decisions expansively interpreting the
Colvin, supra, at 6 (estimating that 23.1% of nonunionized employees are now subject to express class-action waivers in mandatory arbitration agreements). It is, therefore, this Court‘s exorbitant application of the
As I see it, in relatively recent years, the Court‘s
B
Through the
Illegality is a traditional, generally applicable contract defense. See 5 R. Lord, Williston on Contracts §12.1 (4th ed. 2009). “[A]uthorities from the earliest time to the present unanimously hold that no court will lend its assistance in any way towards carrying out the terms of an illegal contract.” Kaiser Steel, 455 U. S., at 77 (quoting McMullen v. Hoffman, 174 U. S. 639, 654 (1899)). For the reasons stated supra, at 8-17, I would hold that the arbitration agreements’ employer-dictated collective-litigation waivers are unlawful. By declining to enforce those adhesive waivers, courts would place them on the same footing as any other contract provision incompatible with controlling federal law. The
The Court urges that our case law—most forcibly, AT&T Mobility LLC v. Concepcion, 563 U. S. 333 (2011)—rules out reconciliation of the
Here, however, the Court is not asked to apply a generally applicable contract defense to generate a rule discriminating against arbitration. At issue is application of the ordinarily superseding rule that “illegal promises will not be enforced,” Kaiser Steel, 455 U. S., at 77, to invalidate arbitration provisions at odds with the
C
Even assuming that the
Citing statutory examples, the Court asserts that when Congress wants to override the
III
The inevitable result of today‘s decision will be the underenforcement of federal and state statutes designed to advance the well-being of vulnerable workers. See generally Sternlight, Disarming Employees:
The probable impact on wage and hours claims of the kind asserted in the cases now before the Court is all too evident. Violations of minimum-wage and overtime laws are widespread. See Ruan 1109-1111; A. Bernhardt et al., Broken Laws, Unprotected Workers: Violations of Employment and Labor Laws in America‘s Cities 11-16, 21-22 (2009). One study estimated that in Chicago, Los Angeles, and New York City alone, low-wage workers lose nearly $3 billion in legally owed wages each year. Id., at 6. The U. S. Department of Labor, state labor departments, and state attorneys general can uncover and obtain recoveries for some violations. See EPI, B. Meixell & R. Eisenbrey, An Epidemic of Wage Theft Is Costing Workers Hundreds of Millions of Dollars a Year 2 (2014), available at https://www.epi.org/files/2014/wage-theft.pdf. Because of their limited resources, however, government agencies must rely on private parties to take a lead role in enforcing wage and hours laws. See Brief for State of Maryland et al. as Amici Curiae 29-33; Glover, The Structural Role of Private Enforcement Mechanisms in Public Law, 53 Wm. & Mary L. Rev. 1137, 1150-1151 (2012) (Department of Labor investigates fewer than 1% of
If employers can stave off collective employment litigation aimed at obtaining redress for wage and hours infractions, the enforcement gap is almost certain to widen. Expenses entailed in mounting individual claims will often far outweigh potential recoveries. See id., at 1184-1185 (because “the
Fear of retaliation may also deter potential claimants from seeking redress alone. See, e.g., Ruan 1119-1121; Bernhardt, supra, at 3, 24-25. Further inhibiting single-file claims is the slim relief obtainable, even of the injunctive kind. See Califano v. Yamasaki, 442 U. S. 682, 702 (1979) (“[T]he scope of injunctive relief is dictated by the extent of the violation established.“). The upshot: Employers, aware that employees will be disinclined to pursue small-value claims when confined to proceeding one-by-one, will no doubt perceive that the cost-benefit
In stark contrast to today‘s decision,16 the Court has repeatedly recognized the centrality of group action to the effective enforcement of antidiscrimination statutes. With Court approbation, concerted legal actions have played a critical role in enforcing prohibitions against workplace discrimination based on race, sex, and other protected characteristics. See, e.g., Griggs v. Duke Power Co., 401 U. S. 424 (1971); Automobile Workers v. Johnson Controls, Inc., 499 U. S. 187 (1991). In this context, the Court has comprehended that government entities charged with enforcing antidiscrimination statutes are unlikely to be funded at levels that could even begin to compensate for a significant dropoff in private enforcement efforts. See Newman v. Piggie Park Enterprises, Inc., 390 U. S. 400, 401 (1968) (per curiam) (“When the
I do not read the Court‘s opinion to place in jeopardy discrimination complaints asserting disparate-impact and pattern-or-practice claims that call for proof on a group-wide basis, see Brief for NAACP Legal Defense & Educational Fund, Inc., et al. as Amici Curiae 19-25, which some courts have concluded cannot be maintained by solo complainants, see, e.g., Chin v. Port Auth. of N. Y. & N. J., 685 F. 3d 135, 147 (CA2 2012) (pattern-or-practice method of proving race discrimination is unavailable in non-class actions). It would be grossly exorbitant to read the
I note, finally, that individual arbitration of employee complaints can give rise to anomalous results. Arbitration agreements often include provisions requiring that outcomes be kept confidential or barring arbitrators from giving prior proceedings precedential effect. See, e.g., App. to Pet. for Cert. in No. 16-285, p. 34a (Epic‘s agreement); App. in No. 16-300, p. 46 (Ernst & Young‘s agreement). As a result, arbitrators may render conflicting awards in cases involving similarly situated employees—even employees working for the same employer. Arbitrators may resolve differently such questions as whether certain jobs are exempt from overtime laws. Cf. Encino Motor Cars, LLC ν. Ναυarro, ante, p. ___ (Court divides on whether “service advisors” are exempt from overtime-pay requirements). With confidentiality and no-precedential-value provisions operative, irreconcilable answers would remain unchecked.
*
*
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If these untoward consequences stemmed from legislative choices, I would be obliged to accede to them. But the edict that employees with wage and hours claims may seek relief only one-by-one does not come from Congress. It is the
