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New Employee Handbook Did Not Rescind Previously Signed Arbitration Agreement


rss.shrm.org | Joanne Deschenaux, J.D.

​Takeaway: An employee’s failure to sign an arbitration agreement contained in a new employee handbook did not negate his obligation to arbitrate workplace disputes where he had previously signed a different arbitration agreement and the handbook required binding arbitration of claims.

​An employer’s issuance of a new employee handbook did not change an employee’s obligation to arbitrate workplace disputes, a California appeals court recently ruled. Although the employee did not sign the new arbitration agreement contained in the new handbook, the agreement he had previously signed remained in effect, the court ruled.

The plaintiff worked for a Rancho Dominguez, Calif.-based seafood supplier for more than a decade as an at-will employee. He was promoted during his tenure but alleged that the employer told him he would not become a senior manager because “he was an old white man and not an Italian.” The employer fired the employee in 2022, allegedly in retaliation for his complaints that it mislabeled seafood sold to its customers, sexually harassed female employees and committed insurance fraud.

Was Arbitration Agreement Canceled?

The employee sued the employer, alleging discrimination, wrongful termination in violation of public policy, and retaliation for whistleblowing. The employer sought to compel arbitration of the employee’s complaint, arguing that the employee was bound by an arbitration agreement he signed in 2009. He was also subject to a 2011 employee handbook,…


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