Catherwood LibraryILR School

A U.S. Court of Appeals for the Fifth Circuit ruled on Tuesday that employers may force employees to sign binding arbitration agreements. The ruling overturns a NLRB decision from last year which found that arbitration agreements, which bar employees from suing their employer individually or through a class-action, were in violation of the federally protected right to collective action under the NLRA. The court cited the Federal Arbitration Act as protecting the legality of the waivers, however added that any such waivers must explicitly state that the agreement in no way prevents employees from filing complaints with the NLRB. The ruling is being seen as a huge victory for employers, however it may be overturned again should the case progress to the Supreme Court.