US Supreme Court Holds Age Discrimination Claims Can Be Forced Into Arbitration Under Collective Bargaining Agreements

In April 2009 the US Supreme Court upheld a provision of a collective bargaining agreement that “clearly and unmistakably” requires union members to arbitrate claims under the Age Discrimination in Employment Act. In 14 Penn Plaza LLC v Pyett, 186 LRRM 2065 (April 1, 2009), the Supreme Court held that since the parties had freely negotiated the terms of the collective bargaining agreement the arbitration provision must be honored. In cases where the collective bargaining agreement does not specifically require arbitration, filing of a lawsuit is still an option for disgruntled union member employees. This decision opens the door for litigants to compel arbitration of statutory claims under a collective bargaining agreement that unmistakably contains language waiving the right to a judicial forum. The state courts will have to determine what language is “unmistakable and clear” in waiving this right. Further, future negotiations of collective bargaining agreements that do not already contain this language will likely encompass discussions regarding the clear requirements to submit claims to arbitration.