For many employers, an important reason for rolling out arbitration is a desire to avoid class and collective actions. In this article, we consider whether arbitration agreements live up to their billing in this regard. As explained below, while they aren’t fool-proof, for many employers and many employment claims, arbitration agreements do in fact significantly reduce the risk of class or collective actions.

First, we present the general rule, which is good news for employers. Then we explain some of the exceptions, risks, and pitfalls that can land an employer in a class or collective action.