October 24, 2021

Volume XI, Number 297

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October 22, 2021

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October 21, 2021

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Arbitration Provision in Your Employee Handbook Is Not Enough

The recent New Jersey Appellate Division decision in Morgan v. Raymours Furniture Co. has left little doubt that arbitration provisions contained in employee handbooks are unlikely to be enforceable.

In the past, many employers have included arbitration agreements within their employee handbooks with the intention of requiring personnel to waive their right to bring certain types of legal claims in court and, instead, have their claims heard by an impartial arbitrator.  The idea of having a case (and damages) decided in arbitration by a legal professional is usually more appealing to employers when compared to the uncertainty and publicity of an often more expensive and time-consuming jury trial.  However, thanks to the Appellate Division’s decision, it is now quite clear that any employer serious about requiring arbitration should have their employees sign a separate, stand-alone, arbitration agreement.  The outcome of this decision is also an important reminder that employers should have their employee handbooks and other employee documents reviewed from time to time by counsel to ensure compliance with the ever-changing federal and state employment laws.

© 2021 Giordano, Halleran & Ciesla, P.C. All Rights Reserved National Law Review, Volume VI, Number 28
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About this Author

Ari G. Burd, Shareholder, Giordano Law Firm, Labor & Employment, Cannabis Law, Health Care
Shareholder

Ari devotes his time to assisting and defending employers with regard to traditional employment issues. He frequently counsels employers for compliance with New Jersey laws and has extensive transactional and litigation experience.

Ari has litigated employment matters throughout the state, having made appearances in almost every Superior Court in New Jersey, as well as before both Federal District Courts in New Jersey and the Federal and State Courts in New York.  These actions have involved a diverse range of claims such as wrongful discharge, discrimination, harassment,...

732-741-3900
Jeri L. Abrams, Giordano Halleran, Employment Documentation Lawyer, Workplace Litigation Attorney,Labor & Employment
Shareholder

Jeri focuses primarily on employment law, with an emphasis on drafting and negotiating complex employment-related documentation, such as executive employment, consulting, restrictive covenant, commission, bonus, retention, change-in-control and severance agreements. Jeri counsels employers on a broad range of employment matters, including hiring, disciplining and terminating employees, family and medical leaves, disability leaves and accommodations, anti-discrimination and anti-retaliation laws, wage and hour compliance, and reductions in workforce. She works closely...

732-741-3900
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