On October 3, 2024, the First Department issued a decision in Matter of Michalow v. D.E. Shaw & Co., L.P., 2024 NY Slip Op. 04819, holding that a legal error was an insufficient basis for vacating an arbitral award, explaining:
We reject petitioner’s argument that the arbitrators manifestly disregarded well-defined, explicit, and clearly applicable law, as there are colorable justifications for a finding that the compensation petitioner seeks is incentive compensation rather than earned wages under Labor Law § 190. In any event, even if the Arbitrators’ interpretation of the employment agreements was erroneous, a mere error in the law does not equate to manifest disregard of the law.
(Internal quotations and citations omitted).