     EXCELLENT

Employers Cannot Put Class Action Waivers in Employment Agreements

Employment arbitration agreements that bar employees from filing class actions against their employers, and instead require cases to be brought separately, violate federal labor law, the National Labor Relations Board (“NLRB”) held this month. The decision is D.R. Horton, Inc. and Michael Cuda. 357 NLRB No. 184. In that case, Michael Cuda worked for D.R. Horton, Inc., a new home builder, as a supervisor for ten months. Two years after resigning, he filed an unfair labor practice charge alleging that D.R. Horton’s Mutual Arbitration Agreement unlawfully barred him from filing a collective claim on behalf of a class of employees.

The NLRB agreed, finding a “substantive right to engage in specified forms of associational activity” in the statutory language of Section 7 of the National Labor Relations Act (“NLRA”), which grants employees the right “to engage in…concerted activities for the purposes of collective bargaining or other mutual aid or protection…” 29 U.S.C. §157. D.R. Horton’s chief defense was that the Federal Arbitration Act allows for the enforcement of arbitration agreements “so long as the litigant can effectively vindicate his or her statutory rights through arbitration.” Gilmer v. Interstate/Johnson Lane Corp., 500U.S. 20, 28 (1991). In rejecting this argument and finding that the NLRA bars this common term of employment arbitration clauses, the NLRB effectively held that the NLRA trumped the FAA, and extended its own reach into territory typically governed by other federal law.

The Board held that the NRLA protected employees who signed these arbitration terms from losing their right to bring class actions, finding that the NRLA guaranteed employees access to these collective proceedings. Since this right was waived by D.R. Horton’s arbitration agreement, the NLRB found that the agreement was unlawful under the NLRA.

The Board nonetheless recognized some limits to its power over arbitration clauses, reasoning that, “an agreement requiring arbitration of any individual employment-related claims, but not precluding a judicial forum for class or collective claims, would not violate the NLRA, because it would not bar concerted activity.”

Amici curiae in this matter included the AFL-CIO, the United States Chamber of Commerce, the U.S. Secretary of Labor and the Equal Employment Opportunity Commission.

Client Reviews

    
 
 
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   Anonymous 
 
 
 
 Trustindex verifies that the original source of the review is Google. I was facing a charge of Reckless Driving for speeding on I66 at midnight. This is considered a Class 1 Misdemeanor in the state of Virginia. Having something like Reckless Driving on your record is on par with having a DUI. This charge also carries a chance for jail time (up to a year). I was incredibly scared because I had never faced such a charge. And looking into Virginia Law, my speed exceeded 90mph, which is quite serious. I retained Dave Albo to help me with this case. Since my record was clean, Dave had advised I do the following before my trial. * Take a DMV Driver's Improvement Course * Take a Behavior Modification Course * Do 100 hours of community service * Print my DMV Record one week before the trial On the day of my trial, Dave got my Reckless Driving charge REDUCED to a regular Speeding charge. This was the absolute best case scenario for me. No criminal record. No jail time. No suspension of license. I did receive 6 demerit points and had to pay a fine of $250 (plus court fees). But that's a slap on the wrist, compared to what I could have been facing. Thank you Dave Albo for helping me through this ordeal!
  
 
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   Tom 
 
 
 
 Trustindex verifies that the original source of the review is Google. Dave albo it's a fantastic lawyer. He has helped me twice now with great results both times with minor traffic tickets. I would recommend him to anybody including my family. He has great ethics and honesty which is what I look for in a lawyer .
  
 
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   kendall carpenter 
 
 
 
 Trustindex verifies that the original source of the review is Google. Dave was my attorney recently for a car accident where I needed someone to represent me in court. After exchanging all necessary information he reassured me when the court date came that there wouldn’t be anything to worry about. On the day of court a couple problems arose and Dave was able to rectify them quickly, told me everything I need to say if needed and when it was all over he got my violation reduced significantly. I hope to never go to court again but if I do I will being calling Dave again.
  
 
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   Amanda Stallard 
 
 
 
 Trustindex verifies that the original source of the review is Google. Retaining the services of Mr. Albo for traffic court was probably the best decision I made. He is very responsive to emails, knowledgeable, and punctual. He provided excellent advice that eased the panic of having to go to the court house and stand before a judge. I am very happy with the outcome of my visit to traffic court and highly recommend Dave Albo.
  
 
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   Mark West 
 
 
 
 Trustindex verifies that the original source of the review is Google. Mr Albo was very professional and I was pleased with the outcome.
  
 
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   M 
 
 
 
 Trustindex verifies that the original source of the review is Google. David was incredible to work with from clear communication and next steps. To showing up to traffic court early to walk over all steps, making case in court as experienced/intelligent/well spoken lawyer. Lastly, he even followed after case in writing to confirm the outcome outlining everything that happened in lamen terms (in my case the best outcome we could ask for). I’m so appreciative to David.
  
 
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   mitquinn88 
 
 
 
 Trustindex verifies that the original source of the review is Google. Absolutely top notch representation. Can't thank Dave enough for his knowledge and expertise.
  
 
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   G R 
 
 
 
 Trustindex verifies that the original source of the review is Google. Thanks to Dave Albo for a fantastic job representing me and ensuring the best possible outcome for my case.  I highly recommend him - you will be in good hands for sure.  From start to finish he provided expert counsel and kept me well informed.  He  simply could not have done a better job.
  
 
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   Hope Carrigan 
 
 
 
 Trustindex verifies that the original source of the review is Google. I am THRILLED with the outcome of my case, all thanks to Attorney Albo's superb expertise, excellent advice & sharp negotiating skills! I am extremely relieved and  grateful; I highly recommend retaining his services. Well beyond worth it!!
  
 
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   Doug Damron 
 
 
 
 Trustindex verifies that the original source of the review is Google. Dave did a great job representing me for my traffic court infraction! I wanted the best and his name came up as I searched for an attorney. Highly recommend him on all levels including a successful outcome to my case.