Confidential Single-Employee Arbitration Clause Ruled Unlawful

The NLRB issued a press release announcing an NLRB Administrative Law Judge's opinion in 24 Hour Fitness USA, Inc. (decision). Per the press release, the employer maintained a policy that:

required new employees to agree in writing to submit all employment-related claims to individual arbitration. Employees were also prohibited from discussing such claims with their co-workers.

The ALJ ruled that the policy unlawfully required employees to waive their right to engage in protected concerted activity under the NLRA.

Employers may wish to dust off their arbitration policies and make sure they are in compliance.

Image: NLRB logo used in commentary on the NLRB. Not official use.