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Fifth Circuit Overrules NLRB's Invalidation of Class-action Waivers

05 December 2013

Employment Alert

In D.R. Horton, Inc. v. NLRB, No. 12-60031 (5th Cir. Dec. 3, 2013), the United States Court of Appeals for the Fifth Circuit overturned a controversial National Labor Relations Board (NLRB or Board) decision regarding class- and collective-action waivers, and in doing so strengthened the right of employers to require that employees resolve employment disputes through binding individual arbitration rather than through class or collective actions. The court, however, upheld a limit on this right, which employers must keep in mind as they update their dispute resolution policies.

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The team

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