The U.S. Supreme Court has handed down an opinion that may have important ramifications for employers and others who use arbitration agreements to resolve disputes. Although technically not an employment law case, the decision sets some important limits on how arbitration decisions are appealed.
The Federal Arbitration Act governs many arbitration agreements. The law favors the voluntary use of arbitration to resolve disputes.
Deciding the recent case of Hall Street Associates LLC v. Mattel Inc., a majority of the Supreme Court justices ruled that the Federal Arbitration Act does not allow for expandable judicial review of an arbitrator’s legal errors. In the 6-3 ruling, the court held that the Federal Arbitration Act’s review provisions were meant to be exclusive, and therefore the parties could not contract to broaden the grounds for vacating or modifying an arbitration award.
Who has the final word?
Hall Stree...(register to read more)