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Epic Systems case is discussed
here.) In short, because these provisions were shielded by the Federal Arbitration Act (“FAA”), Section 7 could not be used to invalidate them.
The Board, however, found the requirement in the second clause that “settlements” remain confidential violated employees’ rights and was unlawful under Section 7. According to the Board, the FAA is not implicated with respect to settlements whether confidential or not because “a settlement removes a dispute from arbitration or prevents it from going to arbitration in the first place.” As such, the Board held that the legality of this provision was governed by
Boeing, not
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