5th Circuit rejects NLRB D.R. Horton decision on class-action waivers

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in Employment Law,Human Resources

by Ron Chapman, Jr. & Christopher C. Murray, Esqs., Ogletree Deakins

In a major win for employers, the 5th Circuit Court of Appeals, on Dec. 3, 2013, rejected the highly controversial D.R. Horton decision from the National Labor Relations Board (NLRB).

In D.R. Horton, the NLRB ruled for the first time that the National Labor Relations Act (NLRA) bans employers from including class-action waivers in their employment arbitration agreements. The NLRB’s decision, if left to stand, would have nearly guaranteed that the costs of litigating employment-related claims would only continue to increase.

Strong rebuff

In its opinion, the 5th Circuit flatly rejected the NLRB’s radical interpretation of the NLRA as giving em­­ployees a nonwaivable right to pursue class actions against their employers.

The 5th Circuit held that the NLRB’s decision violated the Federal Arbi­­tra­­tion Act (FAA). That statute generally requires courts to enfo...(register to read more)

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