Employers considering mandatory arbitration of class or collective actions need to think again. Last week, the National Labor Relations Board (NLRB) upended the law in this area, ruling, in D.R. Horton and Michael Cuda,1 that requiring employees to waive class or collective actions and instead arbitrate individually all employment-related disputes, violates the National Labor Relations Act (NLRA).
The case applies to all employers engaged in interstate commerce, regardless of whether their employees are union members, and it comes only months after the U.S. Supreme Court, in AT&T Mobility LLC v. Concepcion,2 seemed to grant new life to mandatory arbitration of employment claims.
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