Right to Retroactively Amend Handbook Makes Arbitration Clause Unenforceable

March 27, 2012 – In The News
Inside Counsel

Mark E. Tabakman, a Partner and member of the firm’s Labor and Employment Practice, was recently featured in Inside Counsel. Tabakman commented on the 5th Circuit decision to limit businesses’ abilities to adopt mandatory arbitration agreements that require employees to settle disputes outside of court.

Essentially, the court said that employers can’t argue that arbitration clauses are binding when they want them to be and not when employees want them to be. According to Tabakman, “If the employer has the option to unilaterally change the playing rules depending on how it sizes up the case—good, bad or otherwise for its position—it’s an illusory benefit.”

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