loader
Page is loading...
Print Logo Logo
generic_insight_detail

A Growing Divide: Sixth Circuit Decision To Invalidate Class/Collective Action Waiver Widens Appellate Court Split


On May 26, the U.S. Court of Appeals for the Sixth Circuit sided with the National Labor Relations Board (NLRB) in finding that an employer unlawfully included a “class action waiver” within a mandatory arbitration program applicable to its employees. In NLRB v. Alternative Entertainment, Inc., the Sixth Circuit specifically found that the company’s arbitration pact barring employees from pursuing class-action litigation or collective arbitration of work-related claims violated Section 7 of the National Labor Relations Act (NLRA) – a stance the NLRB has taken for years. The Sixth Circuit’s decision follows similar decisions by the Seventh and Ninth Circuit Courts of Appeal on this issue, but it conflicts with Fifth and Eighth Circuit decisions that have held class action waivers in arbitration agreements are enforceable under the Federal Arbitration Act. Thus, the divide among the federal appellate courts with respect to the enforceability of such provisions has widened. Thankfully, the U.S. Supreme Court announced in January that it will be taking up this issue for review. While the Supreme Court has upheld class action waivers in the consumer context, it has not yet specifically evaluated such clauses in the employment setting under the NLRA. The Supreme Court’s ruling on this issue will bring clarity to the situation and provide invaluable guidance to companies utilizing mandatory arbitration programs as to whether class action waivers can lawfully be included in their agreements.


RELATED ARTICLES

Not So FAST…Blocking California’s New Fast Food Industry Union Giveaway

September 12, 2022 | Labor Relations, State Labor Laws, Currents - Employment Law

NLRB Proposes Rescinding Trump Board Rule and Expanding Definition of ‘Joint Employer’

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

Order Up! California Governor Signs Fast Food Accountability Law Aimed at Larger Fast Food Operations

September 7, 2022 | Labor Relations, State Labor Laws, Currents - Employment Law

With Tesla Decision, NLRB Rules Dress Codes Unlawful That Restrict Pro-Union Apparel

September 6, 2022 | Labor Relations, National Labor Relations Board

How Much of Current Unionization Boom Is Attributable to Nationwide Starbucks Campaign?

September 1, 2022 | Labor Relations, National Labor Relations Board, Union Organizing

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
arbitration
Class Action
Collective Action Waiver
labor law
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.