A National Labor Relations Board administrative law judge in San Francisco has ruled that Jack in the Box’s arbitration agreement, which is required as an employment condition, violates workers’ rights to pursue class-action law suits.
The judge recommended the arbitration agreement be revised or removed, saying it violated employee rights under sections of the National Labor Relations Act.
Jack in the Box intends to appeal the NLRB decision, which came in an unfair labor practices case filed over the chain’s web-based “Dispute Resolution Agreement.” The suit applied to employees hired by the San Diego-based chain after 2003.
There are 2,249 Jack in the Box restaurants in 21 states and Guam; 413 are company-operated and 1,836 are franchised. The chain’s Qdoba brand has 661 restaurants.
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