Based on two recent enforcement actions, the National Labor Relations Board (NLRB) appears to be moving toward the adoption of a policy disfavoring the inclusion of traditional at-will employment clauses in employee handbooks.

In Hyatt Hotels Corporation (28-CA-061114), an NLRB administrative judge held that an at-will employment clause in Hyatt’s employee handbook violated employees’ right to engage in concerted activity under the National Labor Relations Act. The clause at issue in this case stated that a Hyatt employee retains at-will employment status unless otherwise agreed upon in a writing signed by the employee and Hyatt’s COO or President. In this ruling, the judge noted that such a clause interferes with an employee’s right to bargain for employment rights beyond those accompanying his or her at-will employment status. The NLRB successfully challenged a similar at-will clause in the employee handbook for the American Red Cross of Arizona.

Although both of these NLRB enforcement actions arose in Arizona, many attorneys feel that these decisions represent the NLRB’s developing national stance on at-will employment clauses. The experienced attorneys at DLM Legal are available to review your employee handbook to ensure its full compliance with federal law. To speak with one of them, email info@dlmlegal.com or call 216.635.0002.