Manufacturers Score Important Legal Win Against NLRB

Ruling Promotes Smoother Resolution of Disputes

After the Fifth Circuit U.S. Court of Appeals overturned the National Labor Relations Board’s (NLRB) determination that class action waivers in employment arbitration agreements violate the National Labor Relations Act, National Association of Manufacturers (NAM) Vice President and Deputy General Counsel Patrick Forrest issued a statement.

The Fifth Circuit U.S. Court of Appeals rightly found that the NLRB's ruling directly conflicted with provisions in the Federal Arbitration Act that encourage dispute resolution through arbitration. The NAM filed an amicus brief last year noting that such agreements help reduce business costs, and opposing the Board’s attempt to regulate individual employment contracts by imposing obligations not encompassed by the National Labor Relations Act.

“Today’s ruling represents another important court victory for manufacturers. This is yet another example of NAM's successful litigation efforts to vigorously oppose the aggressive abuse of authority coming from the NLRB. This decision positively affects employers by clarifying that they indeed do have the authority to utilize arbitration agreements with a class action waiver. This will help create a smoother process for resolving disputes and make for a stronger workplace. The NAM Manufacturers’ Center for Legal Action will continue to fight to protect manufacturers against all aspects of NLRB overreach.”

The Manufacturers’ Center for Legal Action serves as the leading voice of manufacturers in the courts, representing the 12 million men and women who make things in the United States. The Center strategically engages in litigation as a direct party, intervenes in litigation important to our manufacturers and weighs in as amicus curiae on important cases. To read more about the Manufacturers’ Center for Legal Action, click here.

Related Tags: