The D.C. Circuit overturns an arbitration award reinstating a worker terminated for calling hotel management “racists” within the earshot of guests. The worker was on a last chance agreement for a prior incident, in which the union waived its right to grieve if the employee were to be terminated for similar behavior. Although the arbitrator had found that the employee violated the last chance agreement, he ordered the employee to be reinstated since he was a “troubled employee, who clearly displays symptoms of underlying psychological imbalance.” The hotel then appealed the arbitration award. The Court granted the hotel’s appeal, ruling that once the arbitrator found that the triggering event occurred—the violation of the last chance agreement—the arbitrator’s inquiry had to end and the union’s grievance was no longer arbitrable. Hay Adams Hotel LLC v. Hotel & Restaurant Employees Lo. 25