2nd Circ. Says Rehired Engineers Must Return Severance Pay

Law360 (July 29, 2020, 6:03 PM EDT) -- The Second Circuit on Wednesday reinstated an arbitration decision mandating two former employees of building maintenance provider ABM Industry Groups pay back roughly $20,000 worth of severance they received even though they had been rehired.

A district court threw out the award last year, finding that onetime ABM employees John Phillip and Eugene Clerkin couldn't be bound to the ruling when they weren't part of the proceedings, as Phillip and Clerkin's union — the International Union of Operating Engineers, Local 30, 30A, 30B, AFL-CIO — represented them both in arbitration and federal court.

However, the Second Circuit said this is a clear mistake. "Federal labor...

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