The discipline of public employees bad long been a difficult problem in New York State. The procedural framework for discipline was set by law and was found cumbersome and difficult to use. A novel approach to the problem was introduced in the early 1970s. It consists of a negotiated expedited disciplinary procedure that culminates in binding arbitration. A study of all disciplinary cases initiated by the state in one year, combined with interviews with those involved in the use of the procedure, demonstrates that effective employee discipline is possible. Problems encountered appear to be the result of inconsistencies in the use of the procedure and differences in agency perceptions of appropriate employee relations. Progressive discipline culminating in binding arbitration offers an effective managerial tool to state agencies and procedural fairness to state employees.