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Arbitration Agreements Can Protect Employers from Class-Action Litigation

July 2014
Employment Law Notes
Arbitration provides an alternative to the expense of formal litigation, but in January 2012, the National Labor Relations Board (“NLRB”) appeared to limit the efficacy of employment arbitration agreements when it held that arbitration agreements containing class-action waivers violate the National Labor Relations Act (“NLRA”). D.R. Horton Inc. & Cuda, 357 N.L.R.B. No. 184 (2012). In labor and employment litigation, class-action lawsuits give employees tremendous leverage by exponentially increasing the risk of employer liability and the cost of litigation.