Schroeder Discusses Use of Class-Action Waivers in Arbitration Cases

Partner Don Schroeder is quoted in a Hotel Management article, “Hoteliers navigate tricky class-action waiver landscape,” about the use of class-action waivers that exempt employees’ rights to participate in class-action lawsuits against their employers.

Schroeder said it may be a good idea to time the signing of new employee contracts with other events, such as promotions, raises or bonuses. “A lot of times, companies will set up an online portal to ensure employees consent to these new rules, and that is appropriate,” he said. “Even an online signature is valid, as long as it ensures the employees have a clear understanding how the portal works and they acknowledge what they sign, and it allows companies to keep a record of it.”

He also said one of the major mistakes hotels make is failing to draft arbitration provisions that make it clear what claims are included under the umbrella of an arbitration clause. “It’s very critical for companies operating in multiple jurisdictions that they include provisions that are clear as to what is and isn’t covered by claims going forward, and for each region as well,” he said.