NLRB Reaffirms D.R. Horton Decision Invalidating Arbitral Class Action Waivers

In a controversial decision that rejects the precedent of numerous federal and state courts, the National Labor Relations Board (NLRB) has reaffirmed its earlier decision in D.R. Horton, Inc., 357 NLRB No. 184 (2012).  In D.R. Horton, the NLRB ruled that an arbitration agreement under which employees were required to waive the right to bring class or collective actions violated the National Labor Relations Act (NLRA).  In the recent decision, a 3-2 NLRB majority invalidated a similar agreement, concluding that the "reasoning and result" of the Horton decision were correct. Murphy Oil USA, Inc., 361 NLRB No. 72 (2014).  Two dissenting NLRB members disagreed with the decision, one observing that the majority had chosen to "double down on a mistake that, by now, is blatantly obvious."  Continue reading this article here.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.