News & Analysis as of

Ninth Circuit Invalidates Arbitration Agreement with Class Action Waiver

On August 22, 2016, the Ninth Circuit joined the Seventh Circuit in the split amongst U.S. Circuit Courts of Appeal on the issue of enforceability of employment arbitration agreements precluding class actions. The Ninth...more

Ninth Circuit Holds Class Action Waivers Are Unenforceable

In a strong blow to employers, the Ninth Circuit Court of Appeals recently released its opinion in Stephen Morris, et al. v. Ernst & Young, et al., No. 13-16599, D.C. No. 5:12-cv-04964-RMW (August 22, 2016), holding that...more

Ninth Circuit, California Appellate Court Take Aim at Arbitration Agreements

The Ninth Circuit and the California Court of Appeal have each issued decisions that may fundamentally affect how employers deal with arbitration agreements in the future. In Morris v. Ernst & Young, the Ninth Circuit held...more

Ninth Circuit Sides with NLRB in Divide over Employee Arbitration Waiver Agreements

The U.S. Court of Appeals for the Ninth Circuit announced this week that it agrees with the National Labor Relations Board that individual arbitration waiver agreements, which prevent employees from filing or participating in...more

Divide Deepens Over Enforceability of Class Arbitration Waivers

The U.S. Court of Appeals for the Ninth Circuit (covering California and eight other western states) on Monday joined the Seventh Circuit, and disagreed with the Fifth Circuit, in rejecting a mandatory employment arbitration...more

And Now There Are Two: The Ninth Circuit Strikes Class Arbitration Waivers Joining the Seventh Circuit on Finding that these...

Seyfarth Synopsis: The Ninth Circuit joined the Seventh Circuit and the NLRB in finding that mandatory arbitration agreements that require all claims to be brought by employees on an individual basis violate the NLRA. On...more

Ninth Circuit Holds that Arbitration Provision Prohibiting Concerted Actions Violates the National Labor Relations Act and is...

In Morris v. Ernst & Young, LLP (hereinafter “Morris”), the Ninth Circuit held that an arbitration provision prohibiting the filing of concerted actions, signed as a condition of employment, violated the National Labor...more

Ninth Circuit Finds Arbitration Agreement That Required Employees to Bring Claims in “Separate Proceedings” Illegal Under the NLRA

On August 22, 2016, in Morris et al. v. Ernst & Young, LLP, a panel of the U.S. Court of Appeals for the Ninth Circuit followed the lead of the National Labor Relations Board (“NLRB”) and the U.S Court of Appeals for the...more

Eighth Circuit Rules That NLRB Erred By Invalidating Employment Agreements Requiring Individual Arbitration

We previously reported on a federal circuit split that has developed over the enforceability of arbitration provisions waiving class actions in employment agreements. Compare December 19, 2013 (D. R. Horton) and November 9,...more

Eighth Circuit Weighs in On Legality of Class Action Waivers

On June 2, 2016, a three-judge panel of the U.S. Court of Appeals for the Eighth Circuit held that an arbitration agreement containing a class action waiver was lawful under the National Labor Relations Act (NLRA). Cellular...more

Class and Collective Action Waivers Lawful under NLRA, Eighth Circuit Finds, Contrary to Seventh Circuit

The National Labor Relations Board erred in determining that a company violated the National Labor Relations Act by maintaining and enforcing a mandatory arbitration agreement which prohibited employees from bringing or...more

Seventh Circuit Finds Unlawful Mandatory Employment Arbitration Agreements with Class Action Waivers

The Seventh Circuit recently ruled that employment arbitration agreements containing class waivers are unlawful under the National Labor Relations Act. In doing so, the Seventh Circuit has created a circuit court split on...more

Out On A Limb, 7th Circuit Creates Circuit Split Over Class Arbitration For Employees

Of all the federal circuit courts, I was not expecting the 7th Circuit to venture out on a limb to support the NLRB’s interpretation of the National Labor Relations Act (NLRA) as precluding class arbitration waivers. ...more

Seventh Circuit Finds Class Action Waivers in Arbitration Agreements are Illegal and Unenforceable under the NLRA

On May 26, 2016, the U.S. Court of Appeals for the Seventh Circuit issued its decision in Lewis v. Epic-Systems Corp., finding that the company's arbitration agreement, which prohibits employees from participating in “any...more

Emerging Trends in Arbitration: Battle Brewing Between Executive and Judicial Branches

In recent years, arbitration has become a divisive issue. Exemplifying the increased public focus on arbitration, The New York Times ran a three-part series in 2015 that was very critical of the state of arbitration law. In...more

How the NLRB Spent Its Summer — Could Be a Chilly Autumn

For those of us in the employment field attempting to recover from the languor of long summer days, it’s time to catch up and ask what the NLRB has been up to during the dog days. The answer – a lot. And so we take this...more

NLRB Again Attempts to Invalidate Mandatory Arbitration Clauses for Employment Claims

In its Murphy Oil decision, the National Labor Relations Board affirmed its 2012 holding in D. R. Horton, which found an employer violates the NLRA when it requires employees “as condition of their employment, to sign an...more

Fifth Circuit Delivers Crippling Blow to Controversial NLRB Class Action Waiver Theory

Arbitration is generally supposed to be faster, cheaper, and more predictable than litigation. Homebuilder D.R. Horton, like many other employers, certainly believed this when, in 2006, it began requiring employees to sign...more

Compelling Individual Arbitration Violates National Labor Relations Act? It Does According to ALJ

Joining the ever growing list of opinions on the arbitrability of class claims, an NLRB Administrative Law Judge recently ruled that an arbitration agreement that did not expressly bar workers from bringing class or...more

D.R. Horton on Steroids: NLRB Invalidates Arbitration Agreement Without Class Waiver

As reported previously here, the National Labor Relations Board (“NLRB” or the “Board”) in D.R. Horton, Inc., 357 NLRB No. 184 (2012), held that requiring employees to enter into an arbitration agreement containing a...more

Fifth Circuit Overrules NLRB On D.R. Horton Mandatory Arbitration Case

As we previously reported, in D.R. Horton, the NLRB held that a mandatory arbitration agreement that waives employees’ rights to participate in class or collective actions is unlawful under the National Labor Relations Act...more

Fifth Circuit Reverses NLRB Position on Use of Class and Collective Action Waivers in Mandatory Arbitration Agreements

On Tuesday, the Fifth Circuit Court of Appeals overturned a decision of the National Labor Relations Board that declared class and collective action waivers in mandatory employment arbitration agreements to violate federal...more

NLRB Decisions To Fall Like Dominos?

As you may have heard, the District of Columbia Circuit Court of Appeals recently sent shockwaves through the labor relations world by holding that President Obama's "recess" appointments to the National Labor Relations Board...more

Eighth Cicuit: FLSA Does Not Preclude Enforcement of Class Action Waiver

In a significant victory for employers, the Eighth Circuit, in Owen v. Bristol Care Inc., No. 12-1719, overturned a Missouri district court ruling that class action waivers were unenforceable in FLSA cases....more

Eighth Circuit Upholds Employment Agreement Waiving Collective Action Rights

The U.S. Court of Appeals for the Eighth Circuit has joined the clear majority of federal district courts in concluding that employment arbitration agreements may bar class and collective actions, in spite of the National...more

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