The decision holds that arbitration agreements with class and
collective action waivers violate the National Labor Relations
Act.
On October 28, the National Labor Relations Board (NLRB or the
Board) held fast to its position that arbitration agreements with
class and collective action waivers, required as a condition of
employment, violate the National Labor Relations Act (NLRA) and are
unenforceable. The Board's position on this issue—first
announced in its 2012 D. R. Horton decision—was rejected on
appeal by the U.S. Court of Appeal for the Fifth Circuit last year
and by dozens of other federal courts considering the same
issue.
In Murphy Oil USA, Inc.,1 a majority of the Board
reaffirmed its position that class and collective action waivers,
at least when they are required as a condition of employment,
violate the NLRA. It remains to be seen whether the Board will find
that other forms of arbitration agreements with class and
collective action waivers, such as
