Court expands arbitration of race discrimination claims

The U.S. Supreme Court and other courts have found an employee’s discrimination claim must be arbitrated depending on the wording of a collective bargaining agreement (CBA), employment agreement, company handbook, or policy. In a recent decision, the Appellate Division, Second Department ruled a union member could be compelled to arbitrate his race discrimination claims, including his statutory remedies. This has huge ramifications for many employers.

Background

Ronnie Wilson, an African-American maintenance worker and member of Service Employees International Union Local 32BJ, alleged his employer—PBM, LLC—subjected him to a hostile work environment and that he was discharged from his employment because of his race. He asserted he was routinely referred to as "boy" and observed "several nooses" hanging in the workplace.

After filing grievances with the union, Wilson claimed he was transferred without explanation and later terminated based on a pretext (false reason) following a post-employment background check that revealed an undisclosed criminal conviction. He grieved his discharge. While the union arbitrated his unjust discharge complaints, it declined to arbitrate his race discrimination claims.