Companies can require employees to arbitrate employment disputes individually and prohibit them from pursuing class action lawsuits.
Key practice point 1. Employers can now require employees to resolve employment-related disputes individually, waiving any right to pursue class action or collective action claims through arbitration or in court. Employers who use mandatory arbitration agreements with their employees should be sure that they contain clear prohibitions on employees pursuing class and collective claims. The Fifth Circuit Court of Appeals has overturned a controversial National Labor Relations Board (NLRB) ruling that such provisions violate the National Labor Relations Act (NLRA). D.R. Horton, Inc. v. National Labor Relations Board.