FACTS
Employee disputed the amount of severance payments and claimed the company violated Massachusetts Wage Act . The employment agreement was subject to arbitration.
The arbitrator found payments were proper and not a violation of the Wage Act.
ISSUE
Did the arbitrator exceed her authority in not finding a violation of the Wage Act?
RULING
Arbitrator’s ruling stands.
REASONS
Arbitrator’s findings are binding even if erroneous. An error of law does not make a ruling beyond the arbitrator’s authority, in fact errors of law by arbitrators are unreviewable by Massachusetts Courts.
Judicial review is broader when the arbitrator’s authority comes from a statute. Judges leave it to arbitrators to interpret their authority for awards private contract arbitration.
Even though the Wage Act is a law for protecting the public, judges won’t review arbitration awards based on it because by Federal preemption, they are prohibited to
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