Recent NLRB decision lights road flares around mandatory arbitration policies

Your company has become very concerned about the increasing costs and frequency of employee lawsuits. As an HR manager, you recognize corporate trends and incorporate a mandatory arbitration clause into the current employee handbook, hoping that by requiring employees to arbitrate all their employment disputes, you may be better able to control and predict the costs of resolving them. Over the next couple of years, you see that there are fewer employment-related claims filed against your company, and the average cost of defending those that are filed is less. Job well done, right?

Perhaps, but a recent split decision by the National Labor Relations Board (NLRB) should give you pause. It calls into question whether your company's employment dispute arbitration policy is lawful under the National Labor Relations Act (NLRA). Read More...