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NLRB Raises the Bar on Clarity of Employee Arbitration Agreements

Wednesday, July 10, 2019

Today, more than half of private employers without union-represented employees use binding arbitration agreements to resolve labor disputes, according to the Economic Policy Institute.

Over the years, federal courts have generally rejected legal challenges to arbitration agreements in employment, though they have established some safeguards. Last year, a U.S. Supreme Court decision, Epic Systems Corp. v. Lewis, was a major victory for employers that use arbitration agreements. The Court ruled that arbitration agreements could preempt class action litigation. READ MORE