NLRB Strikes Arbitration Agreement that Does Not Explicitly Permit Access to the Board
Employers, it is time to revisit your arbitration agreements. On Tuesday, the National Labor Relations Board (“NLRB”) issued a unanimous decision striking an employer’s arbitration agreement on the basis that employees could reasonably construe the arbitration agreement to unlawfully restrict access to the Board and its processes.
Like many employers, Prime Healthcare Paradise Valley, LLC (“Prime Healthcare”) required their employees to sign arbitration agreements as a condition of their employment. The issue presented to the NLRB was that these arbitration agreements were very broadly worded and did not explicitly permit employees from filing charges with the NLRB regardless of the arbitration agreement as required under the National Labor Relations Act (“NLRA”). Rather, the arbitration agreements stated, “all claims or controversies for which a federal or state court would be authorized to grant relief” are subject to arbitration and included examples of such covered claims, including those related to wages, breach of contract, discrimination, and violations of any “federal, state or other governmental constitution, statute, ordinance, regulation or public policy.” Two employees filed unfair labor practice charges alleging the arbitration agreement interfered with their rights under the NLRA.
Source: The Saqui Law Group