In what experts predict will be another obstacle, for now, for employee rights, the U.S. Supreme Court in a 5-4 decision in 14 Penn Plaza LLC v. Pyett held that, where a collective bargaining agreement clearly and unmistakably assigns statutory discrimination claims to arbitration, the employee in the bargaining unit forgoes the right to proceed with a claim in court. The Supreme Court has resolved a tension between prior rulings on whether arbitration agreements can preclude an employee’s access to the courts for claims arising under the Age Discrimination in Employment Act, or ADEA.
The plaintiffs in 14 Penn Plaza were members of the Service Employees International Union who were employed by Temco Service Industries as security guards at the 14 Penn Plaza building. 14 Penn Plaza negotiated a new contract with a security services company, with the consent of the plaintiffs’ union. As a result, the plaintiffs received unfavorable position reassignments.
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