1199SEIU United Healthcare Workers East, represented by Katy Hansen of Gladstein Reif & Meginniss, LLP, has petitioned a federal court in New Jersey to compel Manhattanview Healthcare Center to pay nearly $24,000 in overdue 401(k) contributions and accumulated interest, following an arbitration ruling from almost eight years ago.
The issue originated in 2012 when 1199SEIU filed a grievance claiming Manhattanview failed to make the required retirement contributions for several employees between 2008 and 2011, in violation of their collective bargaining agreement. Under the agreement, the employer is obligated to contribute one-half percent of gross wages for eligible workers.
An arbitrator ruled in favor of the union in May 2012, and the union subsequently submitted its calculation of the unpaid amounts. While Manhattanview did not dispute the numbers at the time, it did not fulfill its payment obligations despite repeated demands from the union.
In May 2020, after the continued delay, the arbitrator ordered Manhattanview to pay approximately $11,500 in outstanding contributions plus around $12,500 in interest accrued through August 2020. The nursing home contested the enforcement, arguing the union was attempting to alter the original award, but the arbitrator rejected this claim.
The union then sought judicial enforcement of the arbitration decision, pointing out that federal law mandates courts to uphold arbitration awards based on collective bargaining agreements. The union maintains that the arbitrator acted within his rights and that Manhattanview must comply with the payment directive.