loader
Page is loading...
Print Logo Logo
generic_insight_detail

NLRB Continues to Go Against the Grain with Arbitration-Related Decisions


Despite repeated rejections of the National Labor Board’s (the “NLRB” or the “Board”) decision in D.R. Horton by federal courts across the country, another NLRB judge has upheld the controversial ruling that some arbitration agreements are unlawful under the National Labor Relations Act (the “NLRA”).

In his March 5 ruling in Network Capital Funding Partners, Administrative Law Judge William Nelson Cates found that the employer’s attempt to enforce the arbitration agreement entered into between the company and employee was unlawful. Though Judge Cates found that the arbitration agreement was not unlawful as written, the company violated the NLRA by compelling individual arbitration: “[i]n summary, the Agreement, as enforced, clearly inhibits and interferes with employees’ Section 7 rights in that it requires employees to waive their right to engage in concerted activity for mutual aid and protection by prohibiting class or collective action in any forum.” Further, while Judge Cates acknowledged that three Federal Circuit Courts of Appeals have rejected D.R. Horton, he was bound by Board precedent, and only the Supreme Court or the NLRB itself could change the binding precedent of D.R. Horton.

The Network Capital Funding case serves as a reminder that although D.R. Horton has been summarily rejected in most courts where it has been challenged across the country, the NLRB considers it good law and challenges to arbitration agreements can still be successfully brought before the Board.


RELATED ARTICLES

Labor Law Recap: 2022 Was The ‘Year of the Strike’

January 10, 2023 | Labor Relations, Strikes and Picketing

Labor Law Changes To Be Aware Of In The New Year

January 3, 2023 | Labor Relations, National Labor Relations Board

Prices Keep Rising: Labor Board Significantly Expands Remedies Available To Employees

December 14, 2022 | Labor Relations, National Labor Relations Board

Triple Threat: NLRB Facing Staffing Shortages, Increased Workload, and Budgetary Constraints

November 30, 2022 | Labor Relations, National Labor Relations Board

Reversing the Call: NLRB Seeks to Rescind 2020 Rule, Protect Union Status

November 8, 2022 | Labor Relations, National Labor Relations Board

Subscribe

Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you're interested in learning more about.

View Subscription Center
RELATED TOPICS
NLRB
Trending Connect
We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to use cookies.