Eighth Circuit Requires Arbitration of FLSA Claim and Rejects Board Decision in D.R. Horton

Executive Summary: The Eighth Circuit recently upheld the validity of a mandatory arbitration agreement containing a class action waiver and ordered the arbitration of an employee’s collective action under the Fair Labor Standards Act. See Owen v. Bristol Care, Inc. (Jan. 7, 2013). In reaching this decision, the Court rejected the analysis of the National Labor Relations Board (NLRB) in D.R. Horton, Inc., which held that class action waivers violate employees’ rights under the National Labor Relations Act (NLRA).