UNITE HERE LOCAL 1 v. MAGNIFICENT MILE HOTEL MANAGEMENT, LLC, doing business as Chicago Hotel Collection

Background A hotel fired an employee who displayed a knife in the workplace, prompting a union grievance. The hotel refused to arbitrate, leading the district court to order the selection of an arbitrator from a list specified in the collective bargaining agreement. The randomly selected arbitrator found the discharge lacked just cause and ordered reinstatement with back pay, which the hotel refused to honor. The court’s reasoning The court affirmed that the collective bargaining agreement’s random selection method must be followed, rejecting the hotel’s argument that a lapse occurred due to past practices. Regarding the award’s substance, the court held that the arbitrator’s factual finding that the employee’s conduct was not threatening was binding. The court further ruled that the public policy against workplace violence does not prevent an arbitrator from ordering reinstatement when the employer retains the legal right to employ the worker, noting that the employer could have suspended the employee without violating the law. What it means going forward Employers cannot use a general public policy against violence to overturn arbitration awards that order reinstatement, provided the arbitrator’s decision does not violate specific statutes or contract terms.