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Trump DOJ's aversion to class actions will have wide impact

The DOJ's recent switch from opposing to defending bans on class actions in workplace arbitration agreements will have far-ranging consequences affecting HR, financial advisors, and many others.

By Marcia Coyle | Updated on July 11, 2017
The DOJ's recent switch from opposing to defending bans on class actions in workplace arbitration agreements will affect HR, financial advisors, and many others. (Photo: AP)

The recent switch by the Trump administration’s U.S. Justice Department from opposing to defending bans on class actions in workplace arbitration agreements will have consequences beyond a trio of challenges the U.S. Supreme Court is set to hear this fall.

On June 16, acting solicitor general Jeffrey Wall informed the justices that the Justice Department was reversing its position in a key labor case, National Labor Relations Board v. Murphy Oil, which tests employee arbitration agreements. The government said it would no longer support the NLRB’s position that arbitration agreements barring class actions violate federal labor law.

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