Fifth Circuit Refuses to Reconsider D.R. Horton v. NLRB Decision
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Last Wednesday, the United States Court of Appeals for the Fifth Circuit refused to reconsider its December opinion in which the court stated a mandatory arbitration agreement that bars a group of employees from engaging in class arbitration does not violate federal labor law. In D.R. Horton v. NLRB, No. 12-60031 (5th Cir. Dec. 3, 2013), a divided appeals court reversed the National Labor Relations Board’s (NLRB) decision that the compulsory agreement violated the workers’ right to collective action. Instead, the Fifth Circuit held that class arbitration “is not a substantive right.”
According to the Fifth Circuit, the National Labor Relations Act (NLRA) does not enjoy a congressional command to automatically override the Federal Arbitration Act and no provision of the law necessarily prevents enforcement of an employment-related agreement to arbitrate. Instead, “[t]he burden is with the party opposing arbitration… and here the board has not shown that the NLRA’s language, legislative history or purpose support finding the necessary congressional command.”
Read original articleTags: Fifth Circuit, National Labor Relations
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