The NLRB Takes the Position that Class Action Waivers in Arbitration Agreements — Even for Non-Union Employers — is an Unfair Labor Practice

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Arbitration Agreements Are Used With Increasing Frequency by Employers

Those running a business know the challenges, perils and pitfalls of attempting to comply with the complex expanse of state and federal laws protecting employees from employers, from large corporations to ma-and-pa shops. There is little to no recourse for the employer once he, she, or it has been dragged into a dispute and forced to go on the defensive. Against this hostile background, more and more employers have sought ways to address employee complaints in a fair forum, with less costs and uncertainty than traditionally afforded in many courts with the unknown specter of a jury trial. Arbitration agreements are an instrument of choice in employers’ attempts to reduce frivolous claims and provide a fair resolution for disputes with employees.

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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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