NLRB Axes Restaurant Co.'s Mandatory Arbitration Pact

Law360 (June 11, 2021, 8:31 PM EDT) -- A subsidiary of the company that operates Maggiano's restaurants violated federal labor law with an arbitration agreement it made its employees sign, the National Labor Relations Board ruled Friday, saying employees could view the agreement as preventing them from filing claims with the board.

In a unanimous decision, the three-member NLRB panel said Brinker International Payroll Co. LP must stop requiring its employees to sign an agreement requiring them to individually arbitrate "any legal or equitable claims or disputes" about their job conditions. Under its 2019 decision in a case involving Prime Healthcare Paradise Valley LLC, the board said that wording...

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