Waiver of Class and Collective Actions Through Mandatory Arbitration Agreements: Alive and Well, Despite the National Labor Relations Board (“NLRB”)

Class and collective action lawsuits, particularly in the area of wage and hour claims under the Fair Labor Standards Act (“FLSA”) and state law, continue to be on the rise and are difficult and costly for employers to defend. A newly decided case reminds us that employers should consider the use of mandatory arbitration agreements that waive class action lawsuits for employment disputes. On December 3, 2013, the federal Fifth Circuit Court of Appeals dealt a major blow to the NLRB when the Court overturned the NLRB’s prior decision that mandatory arbitration agreements containing class action