In a decision issued on April 1, 2009, the Supreme Court held that employers and unions can agree that employment discrimination claims arising under the Age Discrimination in Employment Act (“ADEA”) will be resolved through arbitration. In 14 Penn Plaza LLC v. Pyett, 556 U.S. ____ (2009), the Supreme Court stated that collective bargaining agreement provisions that “clearly and unmistakably” require that ADEA claims be resolved through arbitration are enforceable. This decision is contrary to the longstanding belief held by many courts that unions cannot “waive” employee rights to litigate their discrimination claims in court rather than before an arbitrator.

Although the 14 Penn Plaza LLC case arises in the ADEA context, its holding will likely be applied in cases involving other discrimination statutes. Thus, unless an employment discrimination law specifically prohibits the mandatory arbitration of claims arising under that law, courts will probably find that a collective bargaining agreement mandating the arbitration of such claims is enforceable. However, the mandatory arbitration provision should explicitly identify the employment discrimination statutes to which it applies.

See Legal Alert at:  http://www.kilpatrickstockton.com/publications/legal-alert.aspx?ID=323