Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
In an opinion released today, the U.S. Supreme Court in 14 Penn Plaza L.L.C v. Pyett held that a provision in a collective bargaining agreement that clearly and unmistakably requires union members to arbitrate Age Discrimination in Employment Act (ADEA) claims is enforceable as a matter of federal law.
The case arose when night watchmen at a commercial office building alleged that their reassignment violated their collective bargaining agreement (CBA), and was also the result of unlawful age discrimination. After an arbitrator dismissed their contract claims, the employees filed their ADEA claims in federal district court. The employer moved to dismiss the charges or, in the alternative, to compel arbitration under the CBA. The district court denied the employer’s motion to compel arbitration, finding that it was constrained to follow the Second Circuit’s decision in Rogers’ v. New York University, in which the appellate court held that union-negotiated collective bargaining agreements waiving an employee’s right to bring a statutory claim in court are unenforceable. On appeal, the Second Circuit affirmed.
The Supreme Court reversed and remanded this decision in a 5-4 vote. The Court found that an examination of both the ADEA and the National Labor Relations Act (NLRA) yielded a “straightforward answer” to the question posed. The union and the employer had freely negotiated a CBA that provided that employment-related discrimination claims, including ADEA claims, would be subject to mandatory arbitration. That provision was a subject of bargaining under the NLRA and entitled to court deference unless the ADEA removed this type of claim from the NLRA’s broad sweep. Based on its own precedent, the Court found that the ADEA did not preclude arbitration of claims brought under the statute. Accordingly, the Court held that “a collective bargaining agreement that clearly and unmistakably requires union members to arbitrate ADEA claims is enforceable as a matter of federal law.”
For more information on this decision, see Littler's ASAP: The Supreme Court Opens the Door to Mandatory Arbitration of Discrimination Claims for Union Members by: Gavin S. Appleby, Hans Tor Christensen and Jennifer L. Mora.