Board Holds That Mandatory Arbitration Agreements Restrict Protected Rights

The National Labor Relations Board recently determined that an employer violates the National Labor Relations Act when it requires employees to sign an agreement that precludes them from filing joint, class, or collective claims addressing their wages, hours or other working conditions. In D.R. Horton,357 NLRB No. 184 (January 3, 2012), the Board determined that such agreements unlawfully restrict employees' Section 7 rights to engage in concerted action.  The Board reached its holding despite recent court cases enforcing employment-related arbitration agreements are judicially enforceable under the Federal Arbitration Act.