The New York Times Quotes Richard Rabin on NLRB Action Against Bridgewater Associates
The New York Times has quoted Akin Gump labor and employment partner Richard Rabin in the article “Labor Board Challenges Secrecy in Wall Street Contracts,” regarding provisions in the employment agreements of Bridgewater Associates that are being challenged by the National Labor Relations Board (NLRB).
The article reports that the move by the NLRB was prompted by a sexual harassment complaint this summer by a former Bridgewater employee, after which the board filed a pending administrative action against the firm saying it was “restraining” employees from exercising their rights. The former employee, the article notes, said the hedge fund had retaliated against him when he complained.
Speaking about a potential precedent that could be set by an NLRB ruling on the matter, Rabin said, “I would say it is a watershed event. The risk of these cases has always been out there. But they have always seemed quite remote, and this is making investment managers take notice in a way they hadn’t before.”
Rabin further stated that the board’s action against Bridgewater, which is thought to be the first ever filed against a hedge fund, has money management firms worried because they share many of the same contractual provisions that are being challenged. Hedge funds and private equity firms are bracing themselves for a potential ruling against Bridgewater, he added.