We recommend to most clients that they implement employee arbitration agreements that contain class action waivers. Arbitration, of course, replaces litigation, and can bring to an end all future employee lawsuits. Arbitrations are favored because there is no run-away jury, since there is no jury at all. Arbitrations are also favored because they are confidential, and that discourages copycat lawsuits and employee class action lawsuits from other employees.
Equally important are class action waivers. A class action waiver is part of your arbitration agreement where the employee promises not to file a class action arbitration or lawsuit against your company. Instead, the employee agrees to arbitrate individually.
This is a huge advantage to employers, simply because class actions are so dangerous and expensive. I dare say that implementing an arbitration program with a class action waiver may even stop an employee from demanding arbitration in some instances, since plaintiff's attorneys don't like to arbitrate employee disputes, and will refuse to be hired by your ex-employee who is seeking them out.
The NLRB has stated that class action waivers violate the NLRA. Two comments in response: (1) The NLRB does not have the final say; the courts and Congress do. While Congress has yet to discuss class action waivers, the United State Supreme Court, and two courts from, of all places, California, have held that employee class action waivers are enforceable.
So, why would your company implement an arbitration agreement with a class action waiver? I think the better questions is why wouldn't your company do that?