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31 May 2017 A Growing Divide: Sixth Circuit Decision To Invalidate Class/Collective Action Waiver Widens Appellate Court Split

  On May 26, the U.S. Court of Appeals for the Sixth Circuit sided with the National Labor Relations Board (NLRB) in finding that an employer unlawfully included a “class action waiver” within a mandatory arbitration program applicable to its employees. In NLRB v. Alternative Entertainment, Inc., the Sixth Circuit specifically found that the company’s arbitration pact barring employees from pursuing class-action litigation or collective arbitration of work-related claims violated Section 7 of the National Labor…

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20 May 2015 NLRB Continues Assault On Employer Arbitration Agreements

On Monday, May 18, an administrative law judge (ALJ) for the National Labor Relations Board held a company violated the National Labor Relations Act by creating an arbitration program that effectively precluded employees from bringing class action lawsuits against the employer. Interestingly, the arbitration agreement at issue was silent on whether employees “waived” their ability to bring class action lawsuits against the company – unlike other agreements found unlawful by the Board that contained express…

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03 Nov 2014 NLRB Continues To Invalidate Class Action Waivers In Mandatory Arbitration Programs

While federal courts around the country – including the U.S. Supreme Court – continue to generally uphold “class action waivers” in mandatory arbitration programs, the NLRB continues to go the other way and find that such provisions violate the NLRA. Employers who have arbitration programs that require employees to have claims against companies heard in front of arbitrators rather than courts often include “class action waivers” in their programs. The waivers prohibit employees from forming…

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17 Apr 2014 NLRB DR Horton Rehearing Denied

  The National Labor Relations Board (NLRB) is likely weighing an appeal to the U.S. Supreme Court after the Fifth Circuit Court of Appeals denied the NLRB’s request for an en banc rehearing in DR Horton Inc.   The Decision The Fifth Circuit’s original ruling struck down the National Labor Relations Board’s finding that Section 7 of the National Labor Relations Act prevents employers as a condition of employment from putting in place arbitration agreements that…

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