Justices’ Latest Arbitration Case Threatens Litigation Strategy

An appellate strategy to keep employment disputes in court is in jeopardy now that the US Supreme Court is poised to decide whether federal judges can dismiss or instead must pause cases that they send to arbitration.

The justices’ recent move to review this question ultimately could resolve a split among 10 federal appellate courts, four of which allow dismissal of lawsuits when the underlying allegations are subject to mandatory arbitration. The other six appeals courts stay cases until the outcome of private dispute resolution proceedings.

The dispute at the heart of the case involves allegations of worker misclassification and ...