Wendy’s Franchisee’s Employment Arbitration Agreement Is Found to Be Illegal

By: Sheila Raftery Wiggins

The NLRB ruled that the mandatory arbitration agreement – which a Wendy’s franchisee asks its employees to sign – contains illegal waivers of class and collective rights. The NLRB’s decision conflicts with a federal appellate court ruling in 2013 in a case known as D.R. Horton.  Expect more cases – in the NLRB and the court system – to resolve this dispute. LESSON: Check your employment agreements and the arbitration clauses.

Sheila Raftery Wiggins, of the Newark office, handles matters involving complex commercial disputes, insurance defense, coverage disputes, financial fraud, and attorney ethics.