One of the most significant risks to business in recent years has been the proliferation of class action employment-related lawsuits. Class action claims have been especially popular with plaintiff’s lawyers pursuing federal Fair Labor Standards Act wage claims.
The kids may be waiting for Santa, and everyone is waiting for Noel Canning, but the wait is over, more or less, for indications as when the National Labor Relations Board (NLRB) and the Department of Labor (DOL) may move on proposed “ambush election” and persuader rules, respectively.
In a split decision, the Fifth Circuit Court of Appeals has rejected the view of the National Labor Relations Board (the Board)
On December 3, 2013, the Fifth Circuit Court of Appeals reversed the decision of the National Labor Relations Board (the “Board” or “NLRB”) in D.R. Horton, Inc. and held that D.R. Horton’s arbitration agreement prohibiting class or collective action claims did not violate the National Labor Relations Act (“NLRA”). In so holding, the court found that the Board did not give proper weight to the Federal Arbitration Act (“FAA”).
Arbitration is quickly becoming a major vehicle to resolve individual employee disputes. Now another obstacle to enforcing those arbitration agreements and class action waivers may have been removed.