January 19, 2015 NLRB finds mandatory arbitration agreement unlawful

[Omaha Steve]

For all workers, not just unionized.

http://hr.blr.com/HR-news/Compensation/FLSA-Fair-Labor-Standards-Act/NLRB-mandatory-arbitration-agreement-unlawful#

By Michael Futterman and Jaime Touchstone, Futterman Dupree Dodd Croley Maier LLP

California employment lawA group of workers sued their employer for violations of the Fair Labor Standards Act (FLSA). The district court dismissed the lawsuit and ordered the workers to arbitrate their claims individually in accordance with the mandatory arbitration agreement each had entered into as a condition of employment.

The National Labor Relations Board (NLRB) found the agreements violated federal labor law by restricting the workers' right to collectively litigate.

Murphy Oil employee challenges arbitration agreement

Murphy Oil operates retail fueling stations across the United States. Until early 2012, it required that all job applicants and current employees sign a "Binding Arbitration Agreement and Waiver of Jury Trial," under which they waived their rights to file or participate in class actions or collective lawsuits in any forum. Job applicant Sheila Hobson signed the arbitration agreement in 2008 and went to work for Murphy Oil at its Calera, Alabama, facility.

In June 2010, Hobson and three other employees sued Murphy Oil in federal district court, alleging on behalf of themselves and similarly situated employees that the company violated the FLSA by failing to pay overtime and compensate employees for work-related activities performed off the clock, including monitoring the fuel prices and signage of the company's competitors.

Murphy Oil successfully asked the court to compel the employees to arbitrate their claims on an individual basis under the terms of the arbitration agreement. Hobson then filed an unfair labor practice charge with the NLRB claiming Murphy Oil violated federal labor law by maintaining and enforcing the arbitration agreement.

NLRB deems arbitration agreement unenforceable

FULL story at link.