July 3, 2022

Volume XII, Number 184

Advertisement
Advertisement

July 01, 2022

Subscribe to Latest Legal News and Analysis

June 30, 2022

Subscribe to Latest Legal News and Analysis

Fifth Circuit Issues Landmark DR Horton Decision

In a landmark decision, the United States Court of Appeals for the Fifth Circuit today held that an employer did not violate the National Labor Relations Act (NLRA) by requiring that its employees sign an arbitration agreement prohibiting them from “filing joint, class, or collective claims addressing their wages, hours, or other working conditions … in any forum, arbitral or judicial.” The National Labor Relations Board (NLRB) previously held that the provision violated Section 7 of the NLRA, which allows employees to act in concert with each other. In the same vein, the NLRB also held that the provision violated Section 8(a)(1) of the NLRA, which prohibits employers from requiring that employees agree not to act in concert in administrative and judicial proceedings.

Fifth circuit litigation national labor relations board

In reversing the NLRB’s decision, the Fifth Circuit first observed that class and collective action procedures are not a substantive right.  The Court also observed that nothing in the NLRA or its legislative history provides any indication that the statute was intended to override the Federal Arbitration Act. In fact, courts repeatedly have understood the NLRA to permit and require arbitration. As such, arbitration agreements – such as the one at issue in this case – must be enforced by their terms.

Nevertheless, the Fifth Circuit did hold that the arbitration agreement at issue violated Section 8(a)(1) of the NLRA because it could reasonably be interpreted as precluding an employee’s right to file a charge with the NLRB.

The Fifth Circuit’s Opinion can be found here.

© 2022 BARNES & THORNBURG LLPNational Law Review, Volume III, Number 338
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Barnes & Thornburg’s Labor and Employment Law Department is one of the fastest-growing labor groups in the nation. Two qualities set us apart: Our passion for what we do, and the pride we take in helping clients achieve their business goals. To succeed in the competitive global marketplace, our clients must not only meet but exceed their customers’ expectations. We share this objective, offering superior service, innovative ideas and an understanding of the challenges our clients face.

We love what we do in large part because we love what our clients do – not just...

317-231-7513
Advertisement
Advertisement
Advertisement