The National Labor Relations Board (NLRB) is a board formed by the federal government designed to protect employees working in the United States. The NLRB can form opinions and weigh in on various legal matters, but it does not have any jurisdiction and it has limited power to enforce any of its decisions.
Recently, the NLRB ruled that employment agreements that require workers to settle any disputes with their employer in arbitration are illegal and should be unenforceable in a court of law. Because the arbitration system is not equipped to handle class action or collective action lawsuits, the NLRB argues arbitration agreements deny employees their right to class action lawsuits, which is granted them in Section 7 of the National Labor Relations Act.
The Fifth Circuit Court has largely overturned the past few rulings made by the NLRB and allowed arbitration agreements between companies and their employees to stand. But the Seventh Circuit Court recently made a ruling that’s in line with what the NLRB has been saying all along. The Seventh Circuit Court ruled that Epic Systems’s arbitration agreement with their employees unfairly benefited Epic Systems and denied the employees their rights under the law. Continue reading