Delfina Montes went to work for Shearson Lehman Brothers and signed an agreement to arbitrate any disputes arising from her employment. After the termination of her employment, Montes filed suit for allegedly unpaid overtime under the Fair Labor Standards Act (FLSA), which mandates overtime pay for certain workers. Honoring the
arbitration agreement, the trial court referred the dispute to arbitration. The arbitration panel ruled that Shearson did not owe Montes any overtime pay. Montes petitioned the trial court to vacate the arbitration panel’s ruling as arbitrary and capricious because the panel heeded Shearson’s urging that it disregard the FLSA. In support of her claims, Montes has highlights from the transcript of arbitration in which Shearson’s attorneys try to persuade the arbitrator not to follow the black letter statute. Can a plea to deliberately disregard the relevant law provide a basis for overturning the result of an arbitration?