D.R. Horton, Inc. v. National Labor Relations Board (NLRB)

Case Updates

In a split decision, the Fifth Circuit granted D.R. Horton's petition for review and set aside the holding by the NLRB on class action waivers.

The U.S. Chamber urged the U.S. Court of Appeals for the Fifth Circuit to hold that the NLRB exceeded its authority under the National Labor Relations Act (“NLRA”) when it prohibited all class action waivers contained in arbitration agreements, and that the NRLB's decision conflicts with the pro-arbitration policies reflected in the Federal Arbitration Act (“FAA”) and U.S. Supreme Court precedent, including AT&T Mobility v. Concepcion. According to the Chamber’s amicus brief, under the FAA, all arbitration agreements must be enforced “according to their terms” absent a “contrary congressional command,” and the NLRA does not include such a command. The Chamber warned that the Board's order, if left to stand, would have the practical effect of eliminating employment arbitration as a fast, fair, and efficient alternative to costly litigation, to the detriment of employers and employees alike.