Second Circuit judges on Wednesday were skeptical of a New York hospital’s argument that it shouldn’t have to pay $275,000 to nurses whose workloads increased during purported staffing shortfalls in 2023.
New York-Presbyterian, a nonprofit hospital system, says the arbitration award violates state law forbidding punitive damages in arbitration, as well as federal labor law barring sanctions when no one was harmed financially.
The award provides compensation for the “extra work, extra burden” that was placed on nurses during the staffing shortages, Senior Judge John M. Walker Jr. said during oral arguments.
“Why wouldn’t that relief make sense?” Walker asked. ...
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