• The Federal Arbitration Act v. The National Labor Relations Act: Battle of the Titans
  • June 8, 2012
  • Law Firm: Porzio Bromberg Newman P.C. - Morristown Office
  • Last year in AT&T Mobility LLC v. Concepcion, 563 U.S. &under;&under;&under;, 131 S. Ct. 1740 (2011) the United States Supreme Court held that the Federal Arbitration Act ("FAA") prohibits a court from invalidating arbitration agreements that preclude plaintiffs from proceeding collectively as a class, through either judicial or arbitral forums. Earlier this year the National Labor Relations Board (the "NLRB") issued a decision limiting the scope of AT&T Mobility. In D.R. Horton, Inc., 2012 NLRB LEXIS 11 (N.L.R.B. Jan. 3, 2012), the NLRB held that arbitration agreements that bar employees from proceeding collectively as a class in employment related claims violated the National Labor Relations Act ("NLRA") because such agreements waive employees' rights under the NLRA to engage in "concerted activity." The crucial issue for employers, at this juncture, is how, or if, these two rulings can be reconciled.