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Enforcement of Arbitration Agreements is Strengthened

December 9, 2013 Kelly Schoening Holden

There is an ongoing battle between the federal courts and the National Labor Relations Board about the enforceability of class/collective action waivers in arbitration agreements.  The NLRB has taken a position that such waivers are not enforceable and employees cannot be mandated to sign such waivers upon employment.  This position conflicts with the court’s long-standing history of enforcing such agreements under the Federal Arbitration Act.

The Fifth Circuit recently ruled that such waivers are enforceable. DR Horton v. NLRB, Case No. 12-60031.   This ruling is consistent with decisions in the Second, Eighth and Ninth Circuits.

Kelly Schoening is a Cincinnati attorney practicing at Dressman Benzinger LaVelle psc.

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