In D.R. Horton, Inc. v. NLRB, 737 F.3d 344 (5th Cir. 2013) (No. 12-60031), an employer required its employees to sign an arbitration agreement that prohibited collective or class actions. The NLRB found the agreement violated the NLRA, but the Fifth Circuit reversed. The Fifth Circuit found that although the labor laws reflected Congress’s intent to permit employees to band together to challenge conditions of their employment, requiring arbitration and eliminating class action procedures did not conflict with that intent. The Board’s interpretation, however, had the effect of disfavoring arbitration, which conflicted with the FAA’s policy favoring arbitration agreements. Because neither the text nor the legislative history of the NLRA contained a Congressional command against application of the FAA, nor was there an inherent conflict between the FAA and labor law, the Board erred in finding a NLRA violation.
- How-to guide How-to guide: How to draft an employment contract (USA) Recently updated
- How-to guide How-to guide: How to draft the key provisions of an employee handbook (USA) Recently updated
- How-to guide How-to guide: Overview of US employment law (USA) Recently updated