New Jersey employers should consider the risks of including an arbitration agreement in a standard employment handbook in light of a recent decision by the U.S. District Court for the District of New Jersey in Raymours Furniture Co., Inc. v. Rossi, No. 13-4440, 2014 U.S. Dist. LEXIS 1006 (D.N.J. Jan. 2, 2014). The court refused to enforce an arbitration clause because it was part of an employment policy manual that contained a standard at-will employment disclaimer unequivocally stating the manual was not a contract (i.e., a Woolley disclaimer). The court also found the clause unenforceable because the employer could unilaterally modify any provision of the handbook without notice to or consent of the employee. Read this alert for background and an analysis of the decision as well as suggestions for how New Jersey employers may want to circulate arbitration agreements going forward.

 

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