The Second Circuit affirmed $100,000 in sanctions against Alaris Health at Hamilton Park and subcontractor Confidence Management Systems LLC for failing to comply with an arbitrator’s order requiring them to adhere to a collective bargaining agreement (CBA) and produce payroll records for unionized workers. The workers are represented by 1199SEIU United Healthcare Workers East, whose legal counsel in the case was Katy Hansen and Kent Hirozawa of Gladstein Reif & Meginniss, LLP.
The companies had argued that a 2018 district court order confirming the arbitration award was unclear about their compliance obligations. However, the appeals panel found the order unambiguous, noting that any confusion was addressed by subsequent court instructions.
The dispute stems from a 2008 CBA covering dietary, maintenance, and housekeeping employees at the Hamilton Park nursing facility. After Alaris and CMS determined in 2013 that the agreement did not apply to certain workers, the union pursued arbitration to enforce wage rates and benefit payments. The 2018 arbitration ruling mandated the companies to comply and make necessary payments.
When the companies continued to resist, the union sought enforcement in federal court. Judge Jed S. Rakoff enforced the arbitration award and later sanctioned the companies for contempt, awarding $100,000 in fees due to prolonged litigation caused by their noncompliance. The companies claimed the award lacked specific instructions on payments, but the Second Circuit rejected this argument, upholding the sanctions.