14 Penn Plaza LLC v. Pyett

21 Fla. L. Weekly Fed. S 738, 129 S. Ct. 1456, 173 L. Ed. 2d 398, 556 U.S. 247, 92 Empl. Prac. Dec. (CCH) 43,507, 105 Fair Empl. Prac. Cas. (BNA) 1441, 2009 U.S. LEXIS 2497, 77 U.S.L.W. 4260, 186 L.R.R.M. (BNA) 2065
CourtSupreme Court of the United States
DecidedApril 1, 2009
Docket07-581
StatusPublished
Cited by422 cases

This text of 21 Fla. L. Weekly Fed. S 738 (14 Penn Plaza LLC v. Pyett) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
14 Penn Plaza LLC v. Pyett, 21 Fla. L. Weekly Fed. S 738, 129 S. Ct. 1456, 173 L. Ed. 2d 398, 556 U.S. 247, 92 Empl. Prac. Dec. (CCH) 43,507, 105 Fair Empl. Prac. Cas. (BNA) 1441, 2009 U.S. LEXIS 2497, 77 U.S.L.W. 4260, 186 L.R.R.M. (BNA) 2065 (U.S. 2009).

Opinions

[251]*251Justice Thomas

delivered the opinion of the Court.

The question presented by this case is whether a provision in a collective-bargaining agreement that clearly and unmistakably requires union members to arbitrate claims arising under the Age Discrimination in Employment Act of 1967 (ADEA), 81 Stat. 602, as amended, 29 U. S. C. § 621 et seq., is enforceable. The United States Court of Appeals for the Second Circuit held that this Court’s decision in Alexander v. Gardner-Denver Co., 415 U. S. 36 (1974), forbids enforcement of such arbitration provisions. We disagree and reverse the judgment of the Court of Appeals.

I

Respondents are members of the Service Employees International Union, Local 32BJ (Union). Under the National Labor Relations Act (NLRA), 49 Stat. 449, as amended, the Union is the exclusive bargaining representative of employees within the building-services industry in New York City, which includes building cleaners, porters, and doorpersons. See 29 U. S. C. § 159(a). In this role, the Union has exclusive authority to bargain on behalf of its members over their “rates of pay, wages, hours of employment, or other conditions of employment.” Ibid. Since the 193G’s, the Union has engaged in industrywide collective bargaining with the Realty Advisory Board on Labor Relations, Inc. (RAB), a multiemployer bargaining association for the New York City real-estate industry. The agreement between the Union and the RAB is embodied in their Collective Bargaining Agreement for Contractors and Building Owners (CBA). The CBA requires Union members to submit all claims of employment discrimination to binding arbitration under the CBA’s grievance and dispute resolution procedures:

[252]*252“30. NO DISCRIMINATION
“There shall be no discrimination against any present or future employee by reason of race, creed, color, age, disability, national origin, sex, union membership, or any characteristic protected by law, including, but not limited to, claims made pursuant to Title VII of the Civil Rights Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the New York State Human Rights Law, the New York City Human Rights Code, ... or any other similar laws, rules or regulations. AH such claims shall be subject to the grievance and arbitration procedure (Articles V and VI) as the sole and exclusive remedy for violations. Arbitrators shall apply appropriate law in rendering decisions based upon claims of discrimination.” App. to Pet. for Cert. 48a.1

Petitioner 14 Penn Plaza LLC is a member of the RAB. It owns and operates the New York City office building where, prior to August 2003, respondents worked as night lobby watchmen and in other similar capacities. Respondents were directly employed by petitioner Temco Service Industries, Inc. (Temco), a maintenance service and cleaning contractor. In August 2003, with the Union’s consent, 14 Penn Plaza engaged Spartan Security, a unionized security services contractor and affiliate of Temco, to provide licensed security guards to staff the lobby and entrances of its building. Because this rendered respondents’ lobby services unnecessary, Temco reassigned them to jobs as night porters [253]*253and light-duty cleaners in other locations in the building. Respondents contend that these reassignments led to a loss in income, caused them emotional distress, and were otherwise less desirable than their former positions.

At respondents’ request, the Union filed grievances challenging the reassignments. The grievances alleged that petitioners: (1) violated the CBA’s ban on workplace discrimination by reassigning respondents on account of their age; (2) violated seniority rules by failing to promote one of the respondents to a handyman position; and (3) failed to equitably rotate overtime. After failing to obtain relief on any of these claims through the grievance process, the Union requested arbitration under the CBA.

After the initial arbitration hearing, the Union withdrew the first set of respondents’ grievances — the age-discrimination claims — from arbitration. Because it had consented to the contract for new security personnel at 14 Penn Plaza, the Union believed that it could not legitimately object to respondents’ reassignments as discriminatory. But the Union continued to arbitrate the seniority and overtime claims, and, after several hearings, the claims were denied.

In May 2004, while the arbitration was ongoing but after the Union withdrew the age-discrimination claims, respondents filed a complaint with the Equal Employment Opportunity Commission (EEOC) alleging that petitioners had violated their rights under the ADEA. Approximately one month later, the EEOC issued a Dismissal and Notice of Rights, which explained that the agency’s “‘review of the evidence . . . fail[ed] to indicate that a violation ha[d] occurred,’ ” and notified each respondent of his right to sue. Pyett v. Pennsylvania Building Co., 498 F. 3d 88, 91 (CA2 2007).

Respondents thereafter filed suit against petitioners in the United States District Court for the Southern District of New York, alleging that their reassignment violated the [254]*254ADEA and state and local laws prohibiting age discrimination.2 Petitioners filed a motion to compel arbitration of respondents’ claims pursuant to §§ 3 and 4 of the Federal Arbitration Act (FAA), 9 U. S. C. §§ 3, 4.3 The District Court denied the motion because under Second Circuit precedent, “even a clear and unmistakable union-negotiated waiver of a right to litigate certain federal and state statutory claims in a judicial forum is unenforceable.” App. to Pet. for Cert. 21a. Respondents immediately appealed the ruling under §16 of the FAA, which authorizes an interlocutory appeal of “an order . . . refusing a stay of any action under section 3 of this title” or “denying a petition under section 4 of this title to order arbitration to proceed.” 9 U. S. C. §§16(a)(l)(AMB).

The Court of Appeals affirmed. 498 F. 3d 88. According to the Court of Appeals, it could not compel arbitration of the dispute because Gardner-Denver, which “remains good law,” held “that a collective bargaining agreement could not waive covered workers’ rights to a judicial forum for causes of action created by Congress.” 498 F. 3d, at 92, 91, n. 3 (citing Gardner-Denver, 415 U. S., at 49-51). The Court of Appeals observed that the Gardner-Denver decision was in tension with this Court’s more recent decision in Gilmer v. [255]*255Interstate/Johnson Lane Corp., 500 U. S. 20 (1991), which “held that an individual employee who had agreed individually to waive his right to a federal forum could be compelled to arbitrate a federal age discrimination claim.” 498 F. 3d, at 91, n. 3 (citing Gilmer, supra, at 33-35; emphasis in original).

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21 Fla. L. Weekly Fed. S 738, 129 S. Ct. 1456, 173 L. Ed. 2d 398, 556 U.S. 247, 92 Empl. Prac. Dec. (CCH) 43,507, 105 Fair Empl. Prac. Cas. (BNA) 1441, 2009 U.S. LEXIS 2497, 77 U.S.L.W. 4260, 186 L.R.R.M. (BNA) 2065, Counsel Stack Legal Research, https://law.counselstack.com/opinion/14-penn-plaza-llc-v-pyett-scotus-2009.