Supreme Court Upholds Enforceability Of Collective Bargaining Agreements That Mandate Arbitration For Statutory Claims

Employment Law Update

In the decision 14 Penn Plaza v. Pyett, the United States Supreme Court held that a provision in a collective bargaining agreement expressly requiring union member to arbitrate age-discrimination claims is enforceable. The decision illustrates a continuing trend favoring arbitration of disputes – even ones involving statutory rights – and gives effect to collectively bargained provisions that most jurisdictions had treated as unenforceable.