Switching Sides: The Department of Justice Now Favors Class Action Waivers

cross the United States, the legal landscape surrounding worker rights to sue collectively has shifted substantially. The federal U.S. Department of Justice (DOJ) now favors the enforceability of class action waivers in employment agreements, reversing its previous long-defended position under the prior presidential administration.

Previous DOJ Position and NLRA Enforcement Debate

For several years, the DOJ advocated in support of the legal interpretation held by the National Labor Relations Board (NLRB). The government argued that class action waivers within employer-drafted arbitration agreements violated employee rights protected under the National Labor Relations Act (NLRA). The NLRA legally shields “concerted activity,” meaning workers are protected when acting together to improve workplace conditions, dispute wage violations, report statutory harm, or jointly pursue litigation based on shared corporate policy abuse.

Updated DOJ View in Supreme Court Filing

That legal stance has now reversed. In a brief submitted to the Supreme Court, the DOJ announced it withdrew past support and adopted the opposite conclusion, stating that class action waivers are not inherently illegal under the NLRA, even if those waiver agreements restrict collective litigation.

This brief was filed in connection with consolidated employment law disputes involving mandatory arbitration enforceability, waiver agreements, misclassification impact, employee bargaining power challenges, retaliation defenses, and statutory coverage issues under U.S. labor law.

Three major cases before the Supreme Court are expected to frame precedent this term:

• Epic Systems Corp. v. Lewis
• NLRB v. Murphy Oil USA
• Ernst & Young LLP v. Morris

The core issue in these cases centers on whether employment agreements that require workers to resolve disputes individually through arbitration can lawfully strip employees of their ability to pursue claims collectively in federal court—even when thousands of workers face identical statutory harm.

Why This Matters for Worker Rights

If the Supreme Court adopts the DOJ’s new conclusion, employers may gain stronger legal support to enforce:

• Mandatory arbitration agreements requiring individual-only dispute filings
• Contract clauses restricting participation in employee collective actions
• Waiver agreements used broadly at onboarding
• Defense strategies minimizing national labor liability for systemic wage or discrimination claims

For workers, this could mean:

• A continued decline in group litigation access under federal labor protections
• More disputes diverted into private arbitration instead of open federal courts
• Increased emphasis on state-based anti-retaliation statutes where applicable
• Difficulty challenging employer patterns collectively without opting out

Gig Economy and Misclassification Consequences

The DOJ’s policy reversal is especially relevant in industries where independent contractor misclassification lawsuits have been widespread—rideshare platforms, delivery fleets, staffing networks, or companies relying on 1099 agreements defended nationally. Courts evaluating misclassification claims often apply an economic realities test similar to the one used by the Department of Labor, but interpretations vary significantly by state and federal district.

Reasonable Accommodation and Retaliation Coverage Remains Unchanged

The DOJ reiterated that the withdrawal does not change employers’ legal responsibilities. Disability discrimination claims, retaliation safeguards, interactive accommodation processes, emotional harm damages, or statutory protections under state anti-discrimination law may still apply depending on jurisdiction, bargaining conditions, and personnel record evidence. Employment Law Resources

Final Note for Workers Seeking Legal Guidance

Employees facing retaliation, misclassification contract interference, or legal restriction behaviors tied to arbitration or class waivers should evaluate their legal reporting options early. If you are unsure whether a waiver agreement impacts your ability to pursue collective remedies, legal consultation can clarify enforceability, retaliation risk, coverage strategy, and alternative statutory protection routes.