An independent arbitrator ordered Portland State University to reinstate 10 nontenure-track faculty laid off in June and to provide back pay after finding administrators failed to follow shared-governance procedures. Dorothy C. Foley’s ruling sided with the Portland State AAUP chapter and its members, who argued layoffs violated the collective-bargaining agreement’s protections for continuous appointments. Portland State officials said they “strongly disagree” and are exploring options; faculty leaders called the decision a rebuke of administrative overreach. Bill Knight, president of the PSU AAUP chapter, warned the ruling forces administrators to meaningfully consult faculty on curriculum and retrenchment decisions going forward. The case sets a contractual precedent for campuses nationwide facing budget retrenchment: shared governance provisions can be enforceable through arbitration, raising legal and operational risk for institutions that proceed with layoffs without documented faculty consultation.