Employment Arbitration Policies Must Expressly Exclude NLRA Charges

All private sector employers that maintain mandatory employment arbitration policies for nonunion employees should review those policies as a consequence of the recent decision of the National Labor Relations Board ("the Board" or NLRB) in U-Haul Co. of California, 347 NLRB No. 34 (2006). In that decision, the Board held that an employer's policy violated the National Labor Relations Act (NLRA) because it did not expressly exclude from the disputes subject to mandatory arbitration any unfair labor practice charges that may be filed under the NLRA.

In U-Haul, the employer maintained a mandatory arbitration policy as a condition of employment for all employees. As provided in typical arbitration policies used by many employers, the policy covered all disputes relating to or arising out of employment with the company or the termination of that employment. It specifically covered: