Employment Alert: Employers May Benefit from Supreme Court Decision Upholding Arbitration Requirements


In a clear win for employers, on April 1st the United States Supreme Court held, in 14 Penn Plaza LLC v. Pyett, that a provision in a collective bargaining agreement (CBA) that clearly and unmistakably requires union members to arbitrate claims under the Age Discrimination in Employment Act (ADEA) is enforceable. In so holding, the Supreme Court overturned decisions by the United States District Court for the Southern District of New York and the United States Court of Appeals for the Second Circuit, and cast doubt on the continued validity of long-standing precedent.

At issue in Penn Plaza was a provision of the CBA that prohibited discrimination, but that stated “all such claims shall be subject to the [applicable] grievance and arbitration procedures… as the sole and exclusive remedy for violations.”

Please see full alert for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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