A New York federal court denied Hotel 57 Services, LLC’s motion to compel arbitration of employees’ claim alleging that their placement on a Covid-related indefinite furlough longer than three years is a permanent layoff, ruling the dispute exempt from mandatory arbitration because the company hasn’t provided a performance-based reason for the furlough, and the relevant statutes and employment agreement between the parties intended “permanent layoff” to mean an indefinite discharge longer than six months.
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