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Dec 04

Fifth Circuit Reverses NLRB re: Class Action Waivers in Employment Arbitration Agreements

This guest post was authored by our colleague Daniel P. O’Meara, partner and chair of the firm’s Labor & Employment practice. Dan’s twenty-five years of experience include employment litigation, labor relations and preventive human resource practices. He can be reached at domeara@mmwr.com or 610.889.2215.

The U.S. Court of Appeals for the Fifth Circuit issued a significant decision yesterday, reversing the National Labor Relations Board (NLRB) and clearing the way for employers to include class action waivers within employer/employee mandatory arbitration agreements. D.R. Horton, Incorporated v. NLRB, No. 12-60031 (5th Cir. Dec. 3, 2013).

Although the decision on appeal was issued by the NLRB under the National Labor Relations Act (NLRA), it has direct application to nonunion employees in workplaces in which no union is on the scene. Continue Reading

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