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Tuesday, July 21, 2026

LABOR—ARBITRATION—7th Cir.: Public policy did not warrant employer’s refusal to comply with arbitration award - VitalLaw.com

The public policy of Illinois simply does not address how employers address actual or implicit threats of violence at work.

Because there was nothing wrong with either the process of selecting an arbitrator or the substance of his decision, the Seventh Circuit confirmed the judgment of an arbitration award. This case stemmed from an incident in which a hotel employee displayed a knife in the workplace, resulting in this termination. After being ordered to arbitration, the arbitrator found that the incident deserved a suspension, not termination, and ordered the employee reinstated, a result with which the employer refused to comply, asserting the award violated public policy. In confirming the award, the appeals court observed that a public policy against violence in the workplace is directed against those who employ violence, not against employers trying to choose the best methods of curtailing violence (UNITE HERE Local 1 v. Magnificent Mile Hotel Management, LLC dba Chicago Hotel Collection, No. 25-1265 (7th Cir. June 5, 2026)).

Arbitration award. The employer fired one of its employees after he displayed a knife in the workplace and another employee felt threatened. The fired employee’s union filed a grievance, but the employer refused to arbitrate. A district court ordered the hotel to proceed using an arbitrator chosen from a list. That arbitrator then found that displaying the knife justified a suspension without pay but did not supply just cause for discharge. He...



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