SCOTUS announced today that it would not review the Third Circuit’s decision in Strine v. Delaware Coalition for Open Government, Inc, holding that Delaware’s Chancery Court could not offer its judges’ services as neutral arbitrators in its courtrooms, unless those arbitrations were open to the public. Therefore, that decision is final and Delaware will now
Fifth Circuit Overrules NLRB, Finds D.R. Horton May Preclude Class Arbitration
After three federal circuits had already refused to defer to the NLRB’s decision in D.R. Horton, it is not surprising that the Fifth Circuit yesterday overruled the NLRB’s critical holding: that precluding class arbitrations is a violation of federal labor law. D.R. Horton, Inc. v. Nat’l Labor Relations Bd., __ F.3d __, 2013…
Second and Ninth Circuits Allow Employers To Preclude Collective FLSA Claims, Rejecting NLRB Ruling
In January of this year, the Eighth Circuit was the first federal appellate court to refuse to adopt the National Labor Relations Board’s ruling on class action waivers in employment contracts. (The previous year, in D.R. Horton, the NLRB declared it a violation of federal labor law for employers to require employees to waive their…
Eighth Circuit "Owes No Deference" to NLRB Ruling on Class Arbitration
One year ago, the NLRB ruled in D.R. Horton, Inc. that it is a violation of federal labor law for employers to require their employees to sign arbitration agreements waiving class actions, and that any arbitration agreements waiving class arbitration would be void. This week, the Eighth Circuit became the first federal circuit…
More Administrative Agency Actions on Arbitration
A few months ago I posted about actions that FINRA and the NLRB were taking in support of allowing class arbitration, and those agencies have recently taken additional actions that help consumers or employees with relatively low dollar claims.
The NLRB brought a complaint against 24 Hour Fitness USA, Inc. The complaint alleges that 24…
Rule-Making Comes To The Rescue of Class Arbitration
A reasonable person may have thought that the Supreme Court effectively killed off class arbitrations with its decisions in Stolt-Nielsen and Concepcion, but at least two government agencies have recently made decisions that ensure financial consumers and employees can bring classwide claims in some arbitrations.
FINRA, the Financial Industry Regulatory Authority, regulates all securities…