WASHINGTON (AP) – Employers can no longer require workers to sign arbitration agreements that prevent them from pursuing group claims in court.
The National Labor Relations Board ruled earlier this week that agreements that require workers to file class action claims with an arbitrator unlawfully bar activity protected under the National Labor Relations Act.
In a release issued Friday, the board said the ruling does not require employees to seek relief through class arbitration as long as the employment agreement allows employees to pursue their claims in court.
The decision looked at an arbitration agreement requiring employees of homebuilder D. R. Horton to waive their right to judicial forum and pursue all claims individually before an arbitrator.
Horton will now have to rescind or modify the agreement to comply with the ruling.
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