Sanchez v. Life Care Centers of America, Inc.
Facts
Sanchez (P) accepted a position with Life Care Centers (D) and received an employee handbook when she began work. A few months later Sanchez called in sick and was removed from the work schedule, effectively terminating her employment.
Sanchez brought suit and the trial court entered summary judgment for Life Care, holding that the employee handbook did not modify the at-will status of her employment. The court also held that promissory estoppel was not applicable to employment contracts. Sanchez appealed.
Issue
- Must a disclaimer in an employee handbook state unequivocally that the handbook does not apply to the employment contract if the at will nature of an at will employment is to be maintained?
Holding and Rule of Law
- Yes. A disclaimer in an employee handbook must state unequivocally that the handbook does not apply to the employment contract if the at will nature of an at will employment is to be maintained.
Under these facts the disclaimer speaks in terms of mutual benefit and management enhancement and does not say that the defendant has the right to deviate from the terms of the handbook at its own caprice. It does not say that it remains free to change wages and all other working conditions without consulting the employee or obtaining her agreement, or that it retains absolute power to fire anyone with or without good cause. The operative language of the disclaimer is not bold lettered, it is buried in the introductory paragraphs and it is not portrayed in such a manner as to attract attention to it and it is not stated in language which tells the employee what he needs to know.
The handbook also listed conduct that would result in discharge implying that cause was required for discharge and that there was a progressive method for dealing with discipline and work problems. There was language that inferred that Life Care intended to modify the at will employment contract. Therefore the meaning and effect of the employment relationship is a mixed question of law and fact and as such we must reverse the summary judgment and remand for further proceedings.
Disposition
Reversed and remanded for further proceedings.