United States Supreme Court Rules That Mandatory Arbitration Provision in Collective Bargaining Agreement Is Enforceable For Claim Brought Under Age Discrimination In Employment Act.
Yesterday, the United States Supreme Court in 14 Penn Plaza, LLC v. Pyett, et al. held a provision in a collective bargaining agreement that clearly and unmistakably requires union members to arbitrate Age Discrimination claims brought under the Age Discrimination in Employment Act is enforceable as a matter of law.
The net effect of the decision will prevent litigants from filing a civil action for discrimination under federal employment laws and demanding a trial by jury. Plaintiff's side employment lawyers are typically desirous of having a jury decide their cases. Some plaintiffs will not be getting their day in court. Employees subject to a collective bargaining agreement that specifically states that statutory discrimination claims must be arbitrated will not be able have their case heard by a jury.
On the state level, the New Jersey Supreme Court has previously upheld arbitration agreements contained within an employment application. These agreements require employees to submit statutory discrimination claims to arbitration brought under the New Jersey Law Against Discrimination.
New Jersey employment lawyers have probably not heard the end of this issue. On November 13, 2008, the Assembly Judiciary Committee reported favorably on an Assembly Bill which would amend the New Jersey Law Against Discrimination to prohibit an employer from requiring as a condition of employment that an employee waive his/her right to a trial by jury, thus barring the enforceability of a mandatory arbitration agreement between an employer and employee.
