Can an employer rely on a provision in an employee handbook to compel arbitration of a former employee’s wrongful termination claim? In an opinion recently certified for partial publication, the California court of appeal said “no.” The decision in Sparks v. Vista Del Mar Child and Family Services is limited, however, by several factual findings recited in the court’s statement of its holding. Here is what the court wrote:
“We hold that plaintiff is not bound by the arbitration clause because [1] that clause was included within a lengthy employee handbook; [2] the arbitration clause was not called to plaintiff’s attention, and he did not specifically acknowledge or agree to arbitration; [3] the handbook stated that it was not intended to create a contract; [4] the handbook provided that it could be amended unilaterally by defendant and thus rendered any agreement illusory; [and 5] the specific rules referred to in the arbitration clause were not provided to the plaintiff.”
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