NLRB limits arbitration agreement class-action waivers

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in Employment Law,Human Resources

by Tracey E. Diamond and Kali T. Wellington-James, Esqs.

As class-action lawsuits continue to pick up steam, employers have sought ways to limit this costly and time-consuming litigation. One method of choice: Requiring em­­ployees to sign binding arbitration provisions waiving the right to bring a class-action lawsuit.

In AT&T Mobility LLC v. Con­­cep­­cion (131 S. Ct. 1740, 2011), the U.S. Supreme Court last year gave the green light to arbitration provisions waiving the right to bring consumer class actions.  

Recently, however, the National Labor Relations Board (NLRB) held that class-action waivers violate em­­ployees’ rights to engage in concerted activity.

In D.R. Horton, Inc. (Case No. 12-CA-25764) the employer re­­quired all employees to sign a mutual arbitration agreement (MAA) as a condition of employment.

It required that: (1) all employment disputes be submitted to final and binding arbitration; (2) the arbitrat...(register to read more)

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