Supreme Court Says Employers Can Bar Worker Class Actions

A divided U.S. Supreme Court ruled that employers can force workers to use individual arbitration instead of class-action lawsuits to press legal claims. The decision potentially limits the rights of tens of millions of employees.

The justices, voting 5-4 along ideological lines, said for the first time May 21 that a 1925 federal law lets employers enforce arbitration agreements signed by workers, even if they bar group claims. The majority rejected contentions that a separate law guarantees workers the right to join forces in pressing claims.

The ruling builds on previous Supreme Court decisions that let companies channel disputes with ...