Employment Litigation · Primary-source case analysis

Epic Systems: Federal Law Enforced Employment Agreements Requiring Individual Arbitration

By Aneeta Mishra and Timothy Chan

Published April 22, 2026

Epic Systems resolved consolidated disputes over agreements that required employees to arbitrate wage claims one by one rather than through class or collective proceedings.

Employees pursued collective wage claims

Workers who had signed individualized arbitration agreements filed class or collective actions under the FLSA and related state law. They argued that concerted litigation was protected by the National Labor Relations Act.

The FAA required enforcement as written

The Arbitration Act’s saving clause preserves generally applicable contract defenses, not objections directed at a defining feature of arbitration. Requiring individual proceedings was a term the FAA presumptively protects.

The NLRA did not override the FAA

The NLRA protects organizing and collective workplace activity but does not expressly regulate arbitration procedures or guarantee class litigation. The Court found no clear congressional command displacing the FAA.

Disposition

The Court enforced the individual-arbitration provisions. Questions involving transportation-worker exemptions, formation, waiver, or generally applicable state contract defenses require separate analysis.

Key takeaways

• Review the precise scope and formation of the arbitration agreement.
• Class waivers are generally enforceable under the FAA.
• Apply generally available contract defenses without targeting arbitration.
• Check statutory exemptions and later federal and state developments.