Enforceability of ERISA Class Action Waivers and Mandatory Arbitration Agreements

This CLE webinar will provide ERISA counsel an in-depth analysis of key issues and drafting considerations for the inclusion of ERISA arbitration and class action waivers in ERISA plans. The panel will discuss legal theories and results from recent court rulings as well as recurring issues, critical provisions for plan amendments and separate agreements, and best practices for ERISA counsel and fiduciaries

There has been a growing trend to bind participants in ERISA plans to arbitration agreements and waivers of class action claims, either by plan amendment or by employment agreement (or both). This trend has accelerated since the Supreme Court's ruling in Epic Systems Corp. v. Lewis, which upheld individualized arbitration as consistent with the National Labor Relations Act. However, recent court rulings expose the complexities of ERISA, leading to some instances in which courts have declined to enforce arbitration agreements and class action waivers found in plan documents.

On Feb. 10, 2026, regarding Parrott v. Int’l Bancshares Corp., the U.S. Court of Appeals for the Fifth Circuit rejected the enforcement of an arbitration clause in plan documents because it required participants to waive rights and remedies under ERISA. The court stated that the arbitration clause in the plan documents violated the effective vindication doctrine because it prohibited individual participants from asserting claims on behalf of the plan. This case, along with other recent cases, heightens the need for ERISA and employment counsel, as well as plan sponsors, to understand the opportunities and ramifications of including ERISA-specific provisions in plan documents.

With a higher volume of lawsuits and a new set of decisions highlighting potential pitfalls in enforcing these provisions, this is an ideal time for plan sponsors and their counsel to reevaluate their arbitration and class action waiver provisions.

Listen as our panel discusses legal theories and results from recent court rulings, key considerations for plan amendments and employment agreements, and best practices for ERISA and employment counsel and plan sponsors.