Grievance Arbitration

Sportslaw Jargon: Grievance Arbitration

Grievance arbitration is a process, usually prescribed in a labor agreement, which stipulates that certain problems that arise out of a labor relationship emanating from an interpretation or misinterpretation of the player's contract. With a grievance arbitration clause in a contract, the claim must be handled through an independent arbitrator.

These days, arbitration procedures are relatively standard in most players' contacts. In the NBA, for example, a "grievance" is a matter involving the "interpretation or application" of the collective bargaining agreement, but specifically excludes issues involving compensation. Perhaps the most famous (or infamous) use of an grievance arbitration procedure involved the actions of former Golden State Warrior Latrell Sprewell and the resulting suspensions and termination of his contract. Under the NBA collective bargaining agreement, Sprewell had the right to seek a grievance under a neutral arbitrator. As many know, the arbitrator ruled in his favor and nullified the team's actions in terminating his contract.