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NLRB: Class Action Waivers Unfair Under the NLRA

By Mark Blondman and Frederick G. Sandstrom
February 28, 2012

The National Labor Relations Board (NLRB) recently called into question the growing practice of including class action waivers in employee arbitration agreements, holding that the mandatory waiver of an employee's right to pursue class or collective action litigation is an unfair labor practice under the National Labor Relations Act (NLRA). The NLRB's Jan. 3, 2012 decision in D.R. Horton, Inc. and Michael Cuda, Case 12-CA-25764, serves as an important reminder that the state of the law regarding class action waivers remains unsettled, and that employers should tread carefully in considering whether to add class action waivers to an arbitration program.

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