HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform
Main Menu
Home
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
We have 1 guest online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration

Organizing your community to bring public attention to builder’s bad deeds and seeking assistance from local, state and federal elected officials has proven to be more effective and much quicker for thousands of families. You do have choices and alternatives.  Janet Ahmad

D.R. Hiorton Loses Mandatory Arbitration Case
Tuesday, 15 May 2012

Recent Ruling that Class Action Waivers are Illegal Shows NLRB Remains Active
In D.R. Horton, the respondent company required its employees to execute mandatory arbitration agreements covering employment-related claims. Part of the agreement required the employees to pursue any such claims individually and not as a part of any class or collective action. Company employee Michael Cuda disregarded this portion of the agreement and filed a collective action in arbitration, which was rejected in accordance with the language of the agreement. Cuda then filed an unfair labor practice charge with the NLRB, claiming that his collective action claim was protected “concerted activity” under the National Labor Relations Act (NLRA), and that by disallowing the claim, the company violated the act. 

Recent Ruling that Class Action Waivers are Illegal Shows NLRB Remains Active

by:
Nexsen Pruet LLC - Columbia Office



February 17, 2012

On January 3, 2012, the National Labor Relations Board (NLRB) ruled that a class action waiver in a mandatory employment arbitration agreement is illegal. D.R. Horton, Inc. and Michael Cuda, 357 NLRB No. 184 (2012). This decision comes less than a year after the U.S. Supreme Court upheld such a waiver in a consumer arbitration agreement. AT&T Mobility v. Concepcion, 131 S.Ct. 1740 (2011). Further, in the days since the D.R. Horton decision was published, the Supreme Court again has upheld a consumer arbitration agreement that contained a class action waiver. CompuCredit Corp. v. Greenwood, No. 10-948 (Jan. 10, 2012).

In D.R. Horton, the respondent company required its employees to execute mandatory arbitration agreements covering employment-related claims. Part of the agreement required the employees to pursue any such claims individually and not as a part of any class or collective action. Company employee Michael Cuda disregarded this portion of the agreement and filed a collective action in arbitration, which was rejected in accordance with the language of the agreement. Cuda then filed an unfair labor practice charge with the NLRB, claiming that his collective action claim was protected “concerted activity” under the National Labor Relations Act (NLRA), and that by disallowing the claim, the company violated the act.

In a lengthy opinion, the NLRB distinguished the case from AT&T Mobility and, although acknowledging that the NLRB’s most recent general counsel had written a memorandum to the contrary in 2010, held that the company had committed an unfair labor practice by requiring its employees to arbitrate claims individually. In support of its decision, the NLRB cited its history of upholding employees’ rights to sue collectively and likened the arbitration agreement in D.R. Horton to “yellow dog” contracts from the early days of modern labor law, when employers attempted to have employees waive their rights under the NLRA as a condition of employment. In so deciding, the NLRB found no conflict between its decision and the Federal Arbitration Act, which was discussed in detail in AT&T Mobility and which requires that arbitration agreements be treated no less favorably than any other contracts.

D.R. Horton represents another recent example of the NLRB “flexing its muscles,” and applies equally to union and non-union employers. The agency has made headlines over the past year for actively pursuing litigation and for its new posting requirement for covered employers, the effective date of which has been postponed to April 30, 2012. Nevertheless, companies using mandatory arbitration agreements will watch D.R. Horton’s inevitable appeal closely. (CompuCredit, although not an employment case, may be used to attack the viability of D.R. Horton going forward. It can be argued that CompuCredit requires that an arbitration agreement be enforced according to its terms unless specific congressional intent otherwise is discerned as to the underlying statute.)

Until that time, the best practice in implementing arbitration agreements appears to be the same as it was after the Supreme Court’s 2010 decision in Stolt-Nielsen S.A., et al. v. Animal Feeds Int’l Corp. 130 S.Ct. 1758 (2010), to not mention class actions or collective actions in mandatory employment arbitration agreements.


 
 
< Prev   Next >
Search HOBB.org

Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon


Amazon
Barnes & Noble

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Consumer Affairs Builder Complaints

 TRCC Implosion
 TRCC Shut Down
 Sunset Report

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

OUTSTANDING FOX4 REPORT
TRCC from Bad to Worse
Case of the Crooked House

TRCC AN ARRESTING EXPERIENCE
The Pat and Bob Egert Building & TRCC Experience 

Build it right the first time
An interview with Janet Ahmad

Bad Binding Arbitration Experience?
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or call 1-210-402-6800

Homeowner Websites

top of page

© 2019 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.