Federal Court Offers Guidance re Arbitration of Employment Claims


Employers should think twice before relying on the arbitration provision contained in an Employee Handbook because for the second time in as many years, a Massachusetts federal court has refused to enforce such a provision. In July 2012, the First Circuit rejected an employer’s bid to compel arbitration after an applicant for employment sued for discrimination. In that case, the court ruled that the arbitration requirement referenced in an employment application was ambiguous because the actual policy referred to “employees” rather than “applicants.”

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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