The New York and Presbyterian Hospital must pay out $275,000 to its nurses union after the Second Circuit declined to vacate a staffing dispute arbitration award.

The arbitrator “reasonably interpreted” the terms of the hospital’s collective bargaining agreement with the New York State Nurses Association and provided sufficient justification for the award, the US Court of Appeals for the Second Circuit said Tuesday in affirming a lower court.

The case stems from a union grievance that accused management of failing to adhere to the minimum staffing levels dictated by the parties’ labor contract.

The three-judge Second Circuit panel rejected the …