In the early 20th century, social changes brought about a system designed to protect employees. As part of the American system of labor laws, workers are given certain rights to proceed collectively, to "band together," and to proceed as a unit. Labor laws were first enacted in the United States during a period of Supreme Court jurisprudence that granted a broad array of powers to corporations, in the form of "liberty of contract." Justice Holmes dissented in Lochner v. New York, and planted a seed in his opinion that would later go on to support the idea behind federal labor laws. Today, the Court's Federal Arbitration Act (FAA) jurisprudence on the interpretation of the FAA strays closer to the old Lochner era of interpretation. In D.R. Horton federal labor law and the FAA squared off in such a way that one must displace the other on the issue of enforceability of a class arbitration waiver.
James R. Montgomery,
"Horton and the Who": Determining Who is Affected by the Emerging Statutory Battle Between the FAA and Federal Labor Law,
2014 J. Disp. Resol.
Available at: https://scholarship.law.missouri.edu/jdr/vol2014/iss2/8