The Court of Appeal of California has upheld an arbitration agreement included in an employee handbook. The difference between this case and the arbitration case in "Don't bury arbitration agreement in handbook": The agreement was clear and obvious.
Recent case: Lorna worked as a property manager for a California company for about three years. When hired, she received lots of documents to read and sign, including a 43-page employee handbook.
On the last two pages, in bold, all-caps print, was a section titled “TEAM MEMBER ACKNOWLEDGMENT AND AGREEMENT.” The section laid out various company rules. In addition, its acknowledgment section stated that the employee had received and read the handbook and had read and understood all the terms and conditions outlined in the handbook. It also specified that employees were at-will workers.
In addition, there was a clause that laid out the arbitration language, which stated that any disputes would be handled in arbitration under the Federal Arbitration Act. Lorna signed the page.
Later, she sued, alleging wage-and-hour violations. The employer moved to compel arbitration and the court agreed. (Nelsen v. Legacy Partners, No. A132927, Court of Appeal of California, 5th Appellate District, 2012)
Final note: We said it before and we’ll say it again. If you want to arbitrate workplace disputes, you must make sure the agreement sticks. You will save precious little time and money if you have to first litigate whether the arbitration agreement itself is valid and enforceable. Get expert legal help.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/33000/get-expert-legal-advice-to-make-sure-arbitration-agreements-are-valid-and-enforceable "
- New look for posters from Dept. of Labor & Industry
- E-Verify again an eligibility verification option for Illinois employers
- Entice boomers to take advantage of direct deposit
- Take 10: How to handle the California Labor Code mandate to provide midshift breaks
- Loose lips lose lawsuits: Screen performance reviews for FMLA comments