Facts

A complaint was brought under the National Labor Relations Act against 24 Hour Fitness USA Inc. regarding its use of a mandatory arbitration provision in employment-related disputes.

COMPLAINANT'S CONTENTIONS:
The General Counsel to the National Labor Relations Board contended that 24 Hour Fitness violated the Section 8(a)(1) of the Act by maintaining arbitration rules that required employees, as a condition of employment, to waive their right to pursue employment-related class actions.

RESPONDENT'S CONTENTIONS:
Respondent contended that an opt-out provision of the arbitration policy placed them outside the scope of the prohibition against mandatory individual arbitration agreements, that the potential for joinder of claims under the arbitration policy rendered it lawful, and that the complaint was time-barred.

Result

The NLRB concluded that 24 Hour Fitness violated the Act, and ordered it to cease and desist from maintaining an arbitration policy that violated the law and to take affirmative action to effectuate the policies of the Act.

Other Information

COMMISSIONERS: Mark G. Pearce, Lauren McFerran. FILING DATE: Feb. 15, 2011.