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Disclaimer Makes Arbitration Agreement Legal, NLRB Says (1)

Sept. 12, 2019, 5:05 PMUpdated: Sept. 12, 2019, 10:04 PM

A mandatory arbitration agreement at a Wendy’s franchisee doesn’t violate federal labor law because it included a disclaimer saying workers can still file charges with administrative agencies, the National Labor Relations Board ruled.

The labor board previously said the National Labor Relations Act prohibits arbitration pacts that block workers’ access to the NLRB and other agencies. But the disclaimer—also known as a savings clause—included by the Wendy’s franchisee was enough to make the arbitration agreement legal, the board said in its unanimous Sept. 11 ruling.

“Because the agreements are explicit in informing employees that there is ‘nothing’ in them that...

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