On Friday, September 8, 2017, National Labor Relations Board ("NLRB" or the "Board") Administrative Law Judge Eleanor Laws ruled that SolarCity Corp. ("SolarCity") maintained arbitration agreements with its employees which were illegal due to the fact that they could be read by workers as restricting their rights to file unfair labor practice charges with the NLRB.
Arbitration clauses have changed significantly as online transactions have become even more ubiquitous. In a consumer transaction, arbitration clauses dictate the venue and means by which a consumer complaint may be brought. While traditionally easy to enforce, the "clickwrap" or "browsewrap" formatting of online consumer agreements create new legal questions surrounding enforceability that have not existed before.
In a previous post, we discussed arbitration clauses that prevent consumers from joining in a class action lawsuit. This post will focus on arbitration agreements that prevent employees from joining in a class action against their employer.