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Tuesday, December 25, 2012

24 Hour Fitness: Following D.R. Horton, ALJ Finds Class Action Waiver Violates NLRA, Despite Opt Out Provision

In D.R. Horton, 357 NLRB No. 184 (2012) (discussed here), the National Labor Relations Board held that an employer violated Section 8(a)(1) of the National Labor Relations Act by requiring employees, as a condition of employment, to sign an agreement that precluded them from filing joint, class, or collective claims addressing their wages, hours, or other working conditions.  

24 Hour Fitness, Inc. and Alton J. Sanders, Case No. 20-CA-035419, presents a twist.  The employer there allowed employees to opt out of its arbitration policy -- which included a class action waiver -- within thirty days of hire.  Despite this, an administrative law judge has found that the policy violates the NLRA.  

I will not discuss the opinion in detail.  It is available on the NLRB's web page here

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