Pa. Ruling Highlights Challenges of Employer Arb. Appeals

Daniel Johns authored a Law360 article discussing the challenges employers face in overturning arbitration decisions, particularly in cases involving employee reinstatement after termination. Daniel highlighted the Welch Foods Inc. v. General Teamsters Local Union No. 397 case, where the U.S. District Court upheld an arbitrator’s decision to reinstate an employee terminated for using sexually abusive language, converting the dismissal to a 10-day suspension. He explained that courts apply a deferential standard to arbitration awards, making it difficult for employers to challenge decisions, especially when the arbitrator’s factual findings are binding. Daniel noted that delays in litigation could lead to significant back pay liabilities and advised employers to focus on winning at arbitration rather than relying on appeals.

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