This paper surveys the legal aspects of tenure and arbitration under the Taylor Law, New York State's major statute governing collective bargaining for public employees (including teachers). The law outlaws teachers' strikes, but provides three methods of dispute resolution between employees and school districts (mediation, fact-finding, and both compulsory and voluntary arbitration). The teacher unions seek to negotiate how tenure will be granted, by what criteria, and at what stage in a teacher's career, according to one of these three methods. It is the public policy of the state of New York to encourage voluntary resolution of labor disputes involving public employees through one of these forums. The author describes both the legislation and the court decisions that define the scope of bargaining and arbitration. He concludes that the legal environment in New York offers no major obstacles to negotiating aspects of tenure. (Author/DS)