Fifth Circuit: Businesses Can Ban Class Action Arbitration in Employment Agreements
Large Texas businesses scored a major legal victory Tuesday when a federal appeals court ruled that they can use employment contracts to ban class action arbitration proceedings in wage and work condition disputes with employees. The Fifth Circuit ruled that the National Labor Relations Board overstepped its authority when it told Fort Worth-based D.R. Horton that it could not require its employees to sign an agreement that prohibited them from joining together in an collective arbitration case.



