NLRB's 24 Hour Fitness ruling consistent with precedent


My article discusses a recent NLRB decision, 24 Hour Fitness USA, Inc and Alton J. Sanders, where an NLRB Administrative Law Judge, William J. Schmidt found that 24 Hour Fitness maintained and enforced an unlawful arbitration policy that required employees to give up their federally protected right to take concerted action by including a class action waiver in its arbitration policy and by prohibiting employees from discussing their claims with co-workers. He relied heavily upon the NLRB's recent decision in D.R. Horton, which held that an arbitration policy containing a class action ban as a mandatory condition of employment violates employee's Section 7 rights, because it expressly restricts protected activity by requiring employee to "refrain from bringing collective or class claims in any forum."

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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