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Labor Board Rules that Class Action Waivers in Arbitration Agreements Violate Rights of Employees to Engage in Concerted Activities

January 17, 2012

By PAUL CANE, BOB KRISTOFF & CHASE ENSIGN

On January 6, 2012, the NLRB released a decision that could substantially affect employers with pre-dispute arbitration agreements containing class or collective action waivers. D.R. Horton, Inc., 357 NLRB No. 184 (2012). The decision applies to most private sector employees, whether union or non-union. This Alert highlights some of the issues raised by the decision.