In Lorenzo v. Prime Communications, No. 14-1727 (4th Cir. Nov. 24, 2015) (click here for a copy of the decision), the Fourth Circuit allowed a Fair Labor Standards Act case to proceed against an employer in court and refused to enforce a purported arbitration clause found in an employee handbook due to poor drafting.
Although the employee handbook stated that employees “waived all rights to bring a lawsuit” and “all employment issues” had to be arbitrated, the employee signed a separate form acknowledging receipt of the handbook and indicating that no provision in the handbook created contractual obligations or binding promises. Because the acknowledgment form disclaimed any contractual agreement that might have been created by the handbook’s terms, the Fourth Circuit affirmed the lower court’s refusal to enforce the arbitration clause.