loader
Page is loading...
generic_insight_detail

NLRB Steps Up Enforcement Against Class Action Waivers


Many companies have mandatory arbitration agreements with their employees. Those agreements often contain class and collective action waivers, meaning employees must bring their claims individually. In a recent decision against Hobby Lobby Stores, Inc., regarding just such an agreement, an administrative law judge (ALJ) under the National Labor Relations Board (NLRB) once again ruled that such waivers violated the National Labor Relations Act, which protects “concerted activity” on behalf of employees to promote their mutual aid and benefit. However, the ALJ went further in this opinion than the NLRB has previously ruled. First, the ALJ ruled that the Federal Arbitration Act (which many federal courts have invoked to uphold such class action waivers in mandatory arbitration agreements) is inapplicable, stating the mandatory arbitration agreement is not a “transaction that affects commerce,” a requirement for coverage under the FAA. Second, and even more significant for employers, the ALJ (1) recommended that Hobby Lobby notify the federal district courts where it had previously enforced it arbitration agreement that it would be rescinding or revising its unlawful mandatory arbitration agreement; and (2) ordered the company to reimburse the plaintiffs’ attorneys’ fees and litigation expenses. This bold move will almost certainly be appealed to the full board, and then likely to federal court. Thus far, every federal appeals court to address this issue has come down against the position staked out by the NLRB. Barnes & Thornburg will closely monitor this important case. For more information, click here.


LEAVE YOUR COMMENT

RELATED ARTICLES

Back To Normal? Labor Board To Restart Union Elections

April 2, 2020 | Labor Relations, National Labor Relations Board

Labor Board Finalizes Rule Changes to Enhance Employee Free Choice

April 1, 2020 | Labor Relations, National Labor Relations Board, Unions and Union Membership

Can You Conduct Collective Bargaining By Phone or Teleconference In the Age of Coronavirus?

March 26, 2020 | Labor Relations, National Labor Relations Board

NLRB Delays New Election Rule in Response to AFL-CIO Challenge

March 24, 2020 | Labor Relations, National Labor Relations Board, Unions and Union Membership

NLRB Suspends All Union Elections Until April 3 In Light Of Pandemic

March 19, 2020 | Labor Relations, National Labor Relations Board, Unions and Union Membership

Subscribe

Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you're interested in learning more about.

View Subscription Center
RELATED TOPICS
arbitration agreements
NLRB
Trending Connect
We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to use cookies.