Class action waiver
A class action waiver is a contract clause in which you agree to bring claims only on your own, not as part of a class action.
Also called: class waiver, class action ban, class arbitration waiver, collective action waiver
A class action waiver is a contract clause in which you agree to bring claims only on your own, not as part of a class action.
What it means
A class action waiver is a contract term in which you give up the right to bring or join a class action against the company. Instead, you agree to bring any claim on your own, usually in individual arbitration.
You'll find waivers in app and website terms, credit card and bank agreements, phone contracts and employment agreements, usually inside an arbitration clause. In AT&T Mobility v. Concepcion (2011), the Supreme Court held that the Federal Arbitration Act overrides a state rule that treated class waivers in consumer arbitration agreements as unconscionable. In Epic Systems v. Lewis (2018), it held that employment agreements requiring individual arbitration must be enforced, and that federal labor law does not bar them.
Waivers are not unbeatable. Some laws limit them. For example, a person alleging sexual harassment or sexual assault can choose to avoid a predispute arbitration agreement or joint-action waiver (9 U.S.C. § 402). Whether a particular waiver holds up is for the court to decide.
What it means for you
A waiver may keep you out of a class action that is still being fought, but it does not automatically keep you out of a settlement. The settlement's class definition decides who is covered, and a company that settles can choose to include customers who agreed to a waiver. Read the definition and any exclusions before you assume you are out. If you aren't covered, you may still have other routes, such as small claims court, individual arbitration or joining a group of people who file arbitration claims together. A lawyer can tell you which, if any, fits your situation.
Example
Say a food delivery app's terms say all disputes go to individual arbitration and that you waive any right to join a class action. You join a class lawsuit over delivery fees, and the company asks the judge to enforce the waiver. If it works, your claim goes to arbitration and the class case goes on without you. If the company later settles a class action covering all of its U.S. app users, you may still be included, so check the definition.
FAQ
Generally yes. The Supreme Court has held that the Federal Arbitration Act requires courts to enforce arbitration agreements that call for individual proceedings, including in consumer and employment contracts. Some laws and state rules still create exceptions, so a specific waiver can be challenged.
Not automatically. Whether you can claim depends on the settlement's class definition and exclusions, not on the clause in your old contract. If you fit the definition, you can generally file a claim.
Related terms
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011) (U.S. Reports, Library of Congress)
- Epic Systems Corp. v. Lewis, 584 U.S. 497 (2018) (Supreme Court of the United States)
- 9 U.S.C. § 402, Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (Cornell Legal Information Institute)
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.