Rent-A-Center v. Jackson: A Win for Pro-Arbitration Employers
Who decides whether an arbitration agreement is unconscionable when the agreement explicitly delegates that decision to the arbitrator? According to a slim majority of the U.S. Supreme Court in Rent-A-Center v. Jackson, No. 09-497, ___ U.S. ___, slip op. (June 21, 2010), the arbitrator does, if a party challenges the enforceability of the arbitration agreement. The district court may only intervene if a party specifically challenges the validity of the agreement to delegate that decision to the arbitrator. The decision makes it more difficult for a current or former employee who has signed an arbitration agreement with a proper delegation provision to avoid arbitration and bring a private lawsuit. That is a positive result for pro-arbitration employers.
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