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Murphy Oil USA, Inc.

361 N.L.R.B. 72 (2014)

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Murphy Oil USA, Inc.

National Labor Relations Board

361 N.L.R.B. 72 (2014)

Facts

Employer Murphy Oil USA, Inc. (defendant) required all job applicants and employees to sign an arbitration agreement. The agreement required individual arbitration of any employment-related dispute, waiving the right to either class arbitration or collective or class-action lawsuits. Three employees filed a collective lawsuit alleging the company violated the Fair Labor Standards Act (FLSA) by failing to pay for overtime and off-the-clock work-related activities. The district court compelled arbitration under the agreement. Meanwhile, one of the employees filed charges with the National Labor Relations Board (NLRB), claiming the arbitration agreement unlawfully restricted employees’ right to engage in protected concerted activities and would lead employees to believe they could not file unfair-labor-practice charges. The company revised the agreement to clarify that it did not preclude unfair-labor-practice charges but reserved the right to enforce the waiver under the Federal Arbitration Act (FAA). General counsel for the NLRB filed a revised complaint reiterating that the agreement violated the FLSA.

Rule of Law

Issue

Holding and Reasoning

Dissent (Johnson, Member)

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