A decision handed down by the U.S. Court of Appeals for the Fifth Circuit in New Orleans Tuesday upheld the use of class or collective action waivers in arbitration agreements.
The decision in D.R. Horton Inc. v. National Labor Relations Board, argued before the court back in February, overturned the NLRB’s previous decision, which held that the massive Texas-based residential building company was violating the National Labor Relations Act when it required employees to sign a waiver that prevents them from entering class or collective actions against their employer.
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