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14 Penn Plaza LLC v. Pyett | 556 U.S. 247 (2009)

Collective-bargaining agreements usually require arbitration of employer-employee disputes that can’t be resolved through a contractual grievance process. In 14 Penn Plaza versus Pyett, the question was whether a collective-bargaining agreement could also obligate employees to arbitrate statutory discrimination claims.

The union representing employees in the New York City building-services industry negotiated a collective-bargaining agreement with the Realty Advisory Board on Labor Relations, a multiemployer bargaining association. The agreement required union members to submit all employment-discrimination claims to binding arbitration under the agreement’s grievance and arbitration process. The arbitration provision expressly applied to claims arising under the Age Discrimination in Employment Act, or ADEA.

Union member Steven Pyett was a night lobby watchman at a building owned by Fourteen Penn Plaza, a member of the Realty Advisory Board. Plaza hired a contractor to staff the lobby with licensed security guards. Consequently, Pyett was reassigned to a lower-paying, less desirable position.

The union filed a grievance challenging Pyett’s reassignment, alleging that Plaza discriminated against Pyett because of his age, violated seniority rules, and failed to rotate overtime equitably. After the grievance process proved unavailing, the union requested arbitration.

After the arbitration began, the union withdrew the age-discrimination claim. Thereafter, Pyett sued Plaza in federal district court, alleging that his reassignment violated the ADEA. Plaza moved to compel arbitration under the collective-bargaining agreement. The district court denied the motion. The Second Circuit affirmed. The United States Supreme Court granted cert.

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