NLRB Redoubles Stance that Mandatory Arbitration Clauses Waiving Employees' Rights to Pursue Class or Collective Actions Violate the NLRA | Practical Law
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In Murphy Oil USA, Inc., the National Labor Relations Board (NLRB) declined to acquiesce to the Fifth Circuit's decision in D.R. Horton, Inc. v. NLRB, and redoubled its stance that requiring employees as a condition of employment to sign an arbitration agreement prohibiting them from filing joint, class or collective actions for employment-related claims violates the National Labor Relations Act (NLRA) by restricting employees' concerted activity. The NLRB also concluded that the employer separately violated the NLRA by attempting to enforce its arbitration agreement with this type of provision by requesting that a federal court dismiss a multi-party litigation and compel the parties to arbitrate about individuals' claims separately.