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The EEOC is supposed to engage in a conciliation process before suing employers for alleged employment violations. But sometimes the agency comes out with guns blazing, demanding a huge payment to settle a complaint. Some employers naturally respond negatively—and they may even walk away without further discussions. One employer recently did just that, and then tried to get a federal court to dismiss the EEOC lawsuit.
In January, the National Labor Relations Board held that employers may not require employees to sign arbitration agreements that waive their rights to bring class or collective actions. The D.R. Horton decision will probably be appealed. In the meantime, however, the ruling holds important implications for employers.