NLRB Voids Class Action Waivers

Attached is a decision from the NLRB in D. R. Horton, Inc. (decided the last day of Member Becker's term). In a 2-0 decision with Member Hayes recusing himself, the Board finds that an employer violates Section 8(a)(1) of the Act when it requires its employees who are covered by the Act, as a condition of their employment, to sign an agreement that precludes them from filing joint, class, or collective claims addressing their wages, hours and working conditions against their employer in any forum, arbitral or judicial. The Board finds such waivers to unlawfully restrict the Section 7 rights of employees to engage in concerted activity for their mutual aid and protection, notwithstanding the provisions of the Federal Arbitration Act.

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