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NLRB Laying Out Limits on Mandatory Arbitration Clauses

Oct. 9, 2019, 6:50 PM

A California beauty supply store’s mandatory arbitration agreement illegally restricts employees’ rights to join unions and engage in other workplace collective action, the National Labor Relations Board held Oct. 8 in the latest case to limit arbitration provisions post-Epic Systems.

The decision is one in a line of cases in which the board has laid out its views on the legality of different kinds of arbitration contracts, after the U.S. Supreme Court ruled in 2018 that employers can bar employees from filing class actions and require them to take employment claims to individualized arbitration instead.

Since the ruling...

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