Employment Law Report
NLRB Invalidates Mandatory Arbitration Provision Restricting Class Claims
The agreement in question prohibited an arbitrator from consolidating claims, fashioning a class or collective action, or awarding relief to a group or class of employees. Prior to its decision, the Board had sought amicus briefs on the issues raised by the case from interested parties and received more than a dozen.
The Board’s order requires D.R. Horton to rescind the agreement or revise it to make clear to employees that they are not waiving their right to pursue a class or collective action in all other possible forums including the courts and arbitration.