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NLRB Says Arbitration Agreements Can Remain Confidential


Thursday, April 8, 2021
Confidential arbitration agreements between employers and their employees are commonplace.  Employers favor such agreements for many reasons, including preserving privacy and allowing legitimate claims to be either settled or litigated based on their merits, rather than the threat of public embarrassment or high defense costs.  Employees, too, may value the confidentiality afforded by arbitration.  In contrast to private and confidential arbitration proceedings, public testimony and publicly filed court pleadings, motions, and briefs may contain unflattering or salacious allegations that are readily accessible to the public and may harm an employee’s future employment prospects and reputation.
Confidentiality provisions, however, potentially restrict employees’ freedom to discuss terms and conditions of employment.  Accordingly, in the past, the National Labor Relations Board (“Board” or “NLRB”) held that such provisions vi ....

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NLRB Holds Arbitration Agreements Can Remain Confidential—for Now | Epstein Becker & Green


Epic Systems case is discussed
here.)  In short, because these provisions were shielded by the Federal Arbitration Act (“FAA”), Section 7 could not be used to invalidate them.
The Board, however, found the requirement in the second clause that “settlements” remain confidential violated employees’ rights and was unlawful under Section 7.  According to the Board, the FAA is not implicated with respect to settlements whether confidential or not because “a settlement removes a dispute from arbitration or prevents it from going to arbitration in the first place.”  As such, the Board held that the legality of this provision was governed by
Boeing, not ....

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McFerran Dissent Portends A Change In NLRB's View Of Confidentiality Provisions In Arbitration Agreements - Employment and HR


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As the National Labor Relations Board transitions from a
Republican-majority to a Democrat-majority, the Board s sole
Democrat, Chairman McFerran, continues to provide a window into
what the future is likely to look like under a Biden Board. This
blog is another in a multi-part series discussing how Chairman
McFerran s dissents may become the law once President Biden
appoints new Board members and the Democrats are in the majority.
Another example of this appears in the Board s March 18, 2021
decision,
Dish Network, LLC, which considered the ....

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