A warning to drafters of arbitration clauses in employment contracts: If the agreement doesn't define "just cause" for discipline, the arbitrator will fill in the meaning, and the parties are stuck with it. That's the import of a New Jersey Supreme Court decision reinstating an arbitrator's finding that suspension, not termination, was suitable punishment for an employee's misbehavior. Faced with ambiguous language in the collective bargaining agreement, the arbitrator did not exceed his authority, the court held.
June 10, 2010 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
A word of warning to drafters of arbitration clauses in employment contracts: If the agreement doesn’t define “just cause” for discipline, the arbitrator will fill in the meaning, and the parties are stuck with it.
That’s the import of a New Jersey Supreme Court decision on Tuesday, reinstating an arbitrator’s finding that suspension, not termination, was suitable punishment for high school custodian John Mizichko’s misbehavior.
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