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Arbitration agreement waiving workers' class action rights is allowed: Court

Business Insurance

December 4, 2013

Dan Schwartz has been quoted in an article regarding a recent decision by the 5th Circuit.  Dan responded to the NLRB's position in the case and how the decision will effect future arbitration agreements.  Read Dan's contribution below:

“We've all been sort of waiting to see whether the NLRB's aggressive position in the Horton case would be upheld by a court, and the 5th Circuit flatly said that arbitration agreements should be upheld.

“The 5th Circuit was pretty clear that arbitration agreements are unaffected by the federal labor laws that are out there, and the court saw no reason not to uphold an otherwise valid arbitration agreement,” Mr. Schwartz said.This case is particularly important, he said, “because the agreement at issue also had a class action waiver, and employers have been using those waivers with increasing frequency,” he said.“What you now have is court after court that that has been upholding these provisions, and I think the NLRB is reaching the end of its rope on how far it can really go to overturn those agreements and waivers,” Mr. Schwartz said.

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