D.R. Horton, Inc.

Class Waivers in Employment Arbitration

NCLC's Position

NCLC argued that an arbitration agreement requiring individual arbitration in lieu of class actions or class-wide arbitration does not violate the National Labor Relations Act, and is enforceable pursuant to the Federal Arbitration Act. NCLC filed its brief in response to an invitation from the NLRB. NCLC urged the NLRB to affirm the decision below that upheld a mandatory individual arbitration provision in an employment arbitration agreement. According to NCLC's brief, the U.S. Supreme Court has repeatedly recognized that individual arbitration is fast, fair, and efficient and enforceable under federal law. See, e.g.  Stolt-Nielsen S.A., et al. v AnimalFeeds International Corp. and AT&T Mobility LLC v. Concepcion.

Case Outcome

Two NLRB members voted to strike down all class action waivers as violations of Section 7 of the NLRA. 

Procedural History

Amicus brief filed 7/27/2011. Decided 1/6/2012.

Case Documents