General Language in Employee Handbook Insufficient to Compel Arbitration of LAD Claim

Cowher v. Carson & Roberts Site Construction & Engineering, Co., Inc., et al., No. A-3390-08T3 (App. Div., November 19, 2009) – The Appellate Division recently held that the arbitration clause contained in an employee manual and acknowledgment form was insufficient to compel the plaintiff to submit his discrimination claim to binding arbitration. The language in question advised that “all formal employment disputes will be resolved by final and binding arbitration as set forth in the Employee Manual.” The court found this language was too general to put the plaintiff on notice that he was waiving his right to a jury trial on a statutory discrimination claim, and the employer could therefore not compel arbitration of his claim.  

Note: This article was published in the December 2009 issue of the New Jersey eAuthority.