In the ongoing debate over whether class action waivers in employee arbitration agreements violate the National Labor Relations Act (“NLRA”), the Department of Justice (“DOJ”) has done an about-face–switching stances from pro-employee to pro-employer.
During the Obama administration, the DOJ supported the National Labor Relations Board’s (“NLRB”) controversial position that class action waivers in employee arbitration agreements violate Section 7 of the NLRA. This meant that in many jurisdictions, employers were prohibited from including class action waivers in their arbitration agreements. Now, six months into a new administration, the DOJ has reversed its position in a case pending before the U.S. Supreme Court. In an amicus brief filed last week, the DOJ argues that an employment contract that requires an employee to waive his or her right to bring a class action lawsuit does not infringe upon that employee’s rights under the NLRA. Further, the DOJ argues, “Courts must enforce agreements to arbitrate federal claims unless the [Federal Arbitrati on Act]’s mandate has been overridden by a contrary congressional command or unless enforcing the parties’ agreement would deprive the plaintiff of a substantial federal right.”
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