What happens if I don't sign an updated "Employee Handbook" agreement/contract? [closed]

Question

I've been with a company for going on 11 years. Recently upper management has turned over and they've changed the "employee handbook". Among other things (what seems to be the most concerning part), is that signing it would waive my right to trial if conflict between me and the company occurs.

Is there a precedent as to whether I need to sign this? Does this require more knowledge of the contracts and thus do I need to show the old and new (very different) handbooks to a lawyer? ...or is this common now and I'm just not aware of it?

Update:

Thanks for all your input.

To summarize a couple comments below: Yes, what they want signed is an acknowledgement; at least it starts that way. Within the acknowledgement it states that by signing I must abide the handbook, which is followed by a section (still in the acknowledgement) about "at will" employment. To me that sounds like a contract and the latter part makes it sound much more forceful. Especially considering my initial concern that one of the sections specifically discusses how disagreements that become litigious must be handled--though I'm not thrilled with the "at will" stuff either, but that's a different issue.

Also, yes, it allows for arbitration, which is probably fine. It just seems so arbitrary and ultimately feels wrong to (at least attempt to) remove the possibility for a trial and require something that is likely to happen first anyway.

Answer 1

That's tricky. Employee handbook and policy changes happen all the time. However this is a material legal change to your existing employment contract that you need to accept. That's rarer but certainly not unheard of.

There are two important things to consider: How much does the company care and how much to you care and is any party really willing to pick a fight over this.

The company clearly has a reason to do this. However the reason may be something stupid/harmless, e.g. there is new hotshot in legal who wants to make a name for herself. Or it could be totally nefarious: they know something bad is going down soon where the not having the right to sue is giving them a huge advantage.

It's important for you to figure out what the reason is. Ideally you talk to a person whom you trust and who may have some insight knowledge. Someone up the food chain or inside HR or legal. If you don't have this, you can ask your management and/or HR directly. This has to be done carefully: "I understand there is a significant legal change to my employment contract. Could you please explain what is the rationale behind this and why do you feel this is necessary?" The more you know about the reasons, the better you can assess how hard they are willing to push.

Secondly be clear about your own goals. Is this something you really care about? Personally I'd be more worried about change in IP ownership policies (which I have seen before). Suing your employer is a real desperate step and can be a career killer regardless of whether you are right or wrong or whether you win or lose. Often these types of clause are also trumped by local labor laws anyway.

So you have two options here: you sign or you don't. If you don't the company has two choices again: they let you get away with it or they push. The company reaction will be driven by two factors: how important it is to them (see above) and how many people are complaining about it. If a large number of the employees refuse to sign there is really not a lot the company can do. They may be able to discipline or fire one or two persons but a large scale firing is a major disaster. So it's important for you to find out how other people in the company feel about this and if there is significant resistance on the ground.

So unfortunately this is a complicated and potential dangerous situation. The more you know about the motivation of the company and the mood in the trenches the more intelligently you can react and act. However there is clearly a risk that can lead to a potential termination.

Answer 2

I wouldn't call this "common" among the places that I have been to, but I have certainly seen it.

There's not much that we can actually help with, as this is company specific. However you will want to look at all documentation that is currently relevant. That includes any contracts and agreements that you have signed with this company. Clearly document what rights you have now that you would lose. If you have any concerns, take this documentation to a local lawyer.

In most cases, yes you will need to sign it if you want to continue working with this company. You can of course not sign it, but the company could choose to fire you for not signing. Otherwise there's always the option of applying at a different company.

Answer 3

Revisions to handbooks are relatively common. As organizations grow it is important for companies to update and revise policies and information contained within. You mentioned you had an old employee handbook. Had you previously signed an employment contract? If so, then most likely it had a clause in there stating that you understand that the information/policies are necessarily subject to change and that you understand that revision may apply, revised policies will supercede or replace existing policies, etc. etc.

You may want to look at the verbiage of the agreement they're asking you to sign. My assumption is they're asking you to sign an acknowledgement of the receipt of an employee handbook. Failure of an employee to sign the acknowledgement does not mean you're not still required to comply with the handbook policies its just stating that you've received the handbook.

The biggest thing they are looking for here is some written documentation that you were made aware of the new employee handbook. If you refuse to sign, HR may ask you to write that you refuse to sign on the form which is effectively the same thing as signing because they now have proof they made you aware of the new handbook and asked you to sign. They may also call in a witness and have the HR rep and "witness" both sign off on the form acknowledging that they presented you with the form/handbook and you refused to sign.

The point being, they cannot force you to sign the form. However, if you refuse they may view that as insubordination and cause for termination depending on how important this issue is for the new management.

Also, in regards to waiving your right to trial, that sounds like a separate arbitration agreement. Which is also enforceable under the Federal Arbitration Act (FAA).