Furniture Dealer’s Arbitration Clause Just Veneer, Judge Says in Bias Case

Conflicting wording in Raymour & Flanigan’s employee handbook has led a federal judge to refuse to enforce a provision calling for arbitration of workplace disputes. Chief U.S. District Judge Jerome Simandle in Camden, N.J., found that despite the arbitration clause, the handbook also contained language disclaiming creation of any employment contract. Christopher Mayer of McCarter & English, who represents employers, says New Jersey law on arbitration agreements in handbooks has been clear since Leodori v. CIGNA Corporation in 2003, but a surprising number of employers do not follow it.