If you have new hires sign an employee handbook, you may be interested in a recent New Jersey appellate court decison. Invoking the old proverb “you can’t have your cake and eat it too,” the court held that an employee handbook isn’t a contract and an arbitration clause in the handbook isn’t enforceable.
In the case, Morgan v. Raymours Furniture, the plaintiff sued his employer for discrimination, wrongful termination and other causes of action. The employer tried to compel arbitration, citing an arbitration clause in the handbook.
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