Employment Law Updates | New Statutes, Regulations, and Rules
January 25, 2012
Board Finds that Certain Mandatory Arbitration Agreements Violate Federal Labor Law
D. R. Horton, Inc. and Michael Cuda
No. 12–CA–25764, 1/3/2012
The National Labor Relations Board has ruled that it is a violation of federal labor law to require employees to sign arbitration agreements that prevent them from joining together to pursue employment-related legal claims in any forum, whether in arbitration or in court.
The decision examined one such agreement used by nationwide homebuilder D.R. Horton, under which employees waived their right to a judicial forum and agreed to bring all claims to an arbitrator on an individual basis. The agreement prohibited the arbitrator from consolidating claims, fashioning a class or collective action, or awarding relief to a group or class…
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