NLRB REAFFIRMS ITS D.R. HORTON DECISION, RULING THAT EMPLOYMENT AGREEMENTS REQUIRING INDIVIDUAL ARBITRATION ARE UNLAWFUL
On February 16, 2012, we reported on the National Labor Relations Board’s D.R. Horton decision, which ruled that arbitration agreements that are signed as a condition of employment and preclude employees from bringing joint, class or collective claims over working conditions are unlawful. Subsequently, that opinion was rejected by the Fifth Circuit Court of Appeals, on which we reported on December 19, 2013, and disagreed with by other courts. Notwithstanding these adverse court decisions, on October 28, 2014, the NLRB reaffirmed D.R. Horton, ruling that the arbitration agreements of Murphy Oil USA Inc., which barred employees from pursuing class actions, were unlawful. The majority held that Murphy Oil violated the National Labor Relations Act by requiring employees to arbitrate employment claims on an individual basis, and by seeking to enforce its agreements in court after the employee filed a Fair Labor Standards Act suit. While the dissent accused the NLRB of ignoring “clear instructions” from the U.S. Supreme Court about the interpretation of the NLRA and the FAA, the majority disagreed, although it acknowledged that its opinion was likely not “the last word on the subject.” Murphy Oil USA, Inc., Case No. 10-CA-038804 (N.L.R.B. Oct. 28, 2014).
This post written by Michael Wolgin.
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