The US Supreme Court will soon decide whether to take up an employment law case being litigated by Arent Fox partner Michael Cryan "that could clarify the roles of arbitrators and the National Labor Relations Board regarding final wage offers imposed by employers when reopened negotiations reach an impasse."

Employment Law 360 reports the high court is expected to decide this week on whether to take the case, titled Five Star Parking v. Union Local 723 (Case No. 07-699).

The case involves an parking garage company that reduced its employees wages by 12.5% after declaring an impasse had been reached during "reopener" negotiations.

According to Employment Law 360, some labor experts believe that a denial of writ by the Supreme Court could lead to few reopener clauses in future labor contracts, while others argue the justices should deny the petition because arbitrator awards are usually "impregnable to changes by the courts."

Arent Fox, which represents the employer, is challenging a decision by the US Court of Appeals for the Third Circuit, which held that the arbitrator in the parking garage labor dispute had the authority to (i) find the parking garage had violated the collective bargaining agreement and (ii) order the employer to pay back wages.

The US District Court for the District of New Jersey had initially found that arbitrator had exceeded his authority, accepting Arent Fox's argument on behalf of the employer that only the NLRB could determine whether an impasse had been reached.

In the writ of certiorari filed with the Supreme Court, Cryan wrote, "This issue presents a question of overriding importance because it affects reopener bargaining nationwide. Indeed, absent resolution by this court, reopener bargaining may become a 'charade' rather than an important part of the collective bargaining process."

Interviewed by Employment Law 360, Cryan elaborated: "The collective bargaining agreement did not give the employer the right to implement its last offer upon an impasse, the National Labor Relations Act gave the employer that right, which is why this is not an issue that should be subject to arbitration."

To read the full Employment Law 360 article, please click here.