NLRB Backs Workers on Joint Arbitration Cases
January 09, 2012

The National Labor Relations Board (NLRB), in the much-anticipated DR Horton case, ruled on January 3, 2012 that employers could not prevent workers from filing work-related group or class actions. This brings a showdown between the NLRB and the United States Supreme Court and its decision in AT&T Mobility v. Concepcion, 131 S. Ct. 1740 (2011). Essentially, the NLRB in the DR Horton decision banned employment agreements at many companies that require workers to pursue all claims individually through arbitration. Where Concepcion held such agreements a valid function of the Federal Arbitration Act, the NLRB held that such bans on collective actions violated the Section 7 of the National Labor Relations Act and the Norris LaGuardia Act. In the decision released Friday, the board noted that it was not banning agreements that required employees to use arbitration to settle disputes, but that such agreements must offer some way for employees to make class and collective claims, either in arbitration or in court. An appeal to a federal circuit court is expected.