In a significant decision for employers, the National Labor Relations Board (NLRB) provided new guidance addressing the intersection of arbitration agreements and the National Labor Relations Act (NLRA). The NLRB’s recent decision in Cordúa Restaurants, Inc. expressly authorizes employers to modify arbitration agreements to prevent employees from opting into class action lawsuits in direct response to being sued. This decision follows the U.S Supreme Court’s 2018 decision in Epic Systems v. Lewis, which upheld the enforceability of arbitration agreements and rejected the proposition that such waivers violate the NLRA. Expanding on Epic Systems, the Cordúa NLRB held that warning employees that they will be discharged if they do not accept such an agreement, even when litigation is already pending, does not violate the NLRA.
Home > Federal Law Articles > Labor Law > General (Labor Law) > NLRB Clarifies Employer Right to Require Mandatory Arbitration Agreements Following Supreme Court’s Epic Systems Decision