Hospital’s Arbitration Agreement Nixed by U.S. Labor Board

A California hospital’s arbitration agreement violates federal labor law by restricting workers’ access to the National Labor Relations Board, the NLRB unanimously ruled June 18.

Prime Healthcare Paradise Valley’s arbitration pact doesn’t explicitly prohibit workers from filing charges with the NLRB, but it interferes with that right due to the breadth of its language on what types of claims must go to private arbitration, the board said. Such contracts that make arbitration the sole forum for all claims—including those handled by the NLRB or other administrative agencies—violate the National Labor Relations Act, it said.

“No legitimate justification outweighs, or could ...