Labor board ruling allows group claims in court

AP News
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Posted: Jan 07, 2012 4:19 PM
Labor board ruling allows group claims in court

Employers can no longer require workers to sign arbitration agreements that prevent them from pursuing group claims in court.

The National Labor Relations Board ruled earlier this week that agreements that require workers to pursue class action claims exclusively with an arbitrator unlawfully bar activity protected under the National Labor Relations Act.

In a release issued Friday, the board emphasized the Jan. 3 ruling does not require employees to seek relief through class arbitration as long as the employment agreement allows workers to pursue group claims in court.

The decision looked at an arbitration agreement requiring employees of the nation's largest homebuilder, Fort Worth, Texas-based D. R. Horton, to waive their right to a judicial forum and pursue all claims individually before an arbitrator.