Serpa V. California Surety Investigations: A Case Study

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Employee handbooks have become popular tools for many employers. The handbook is usually provided during employee orientation and it sets the “communicative tone with the employee (Davis, 1968, p. 3).” The handbook may also provide basic information such as policies and procedures, benefit information, and disciplinary procedures. Due to the level of information provided in the handbook, any changes or modifications made by the employer would have to be done in good faith for the employee.

To fully answer the question, is it fair to change or modify the handbook? The answer is yes. There are several occasions or situations where the employee handbook should change. In fact, “employers should regularly revise and modify … their employee
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California Surety Investigations (CSI), is a good example of what could happen when an employer changes or modify its handbook on its discretion. Valeria Serpa, a bail bond investigator for CSI, signed both an arbitration agreement and acknowledgment of receipt of employee handbook. Based on CSI’s arbitration agreement and policy, employees of CSI were to required to “submit all employment-related disputes to binding arbitration; required both parties to pay their own attorney’s fees and CSI to pay all other litigation costs; and included a severability provision (Askanas, 2013, para. 2).” Serpa sued her former employer, CSI, for sexual harassment, discrimination, retaliation, and related claims (Pearl, 2013, para. 2).” CSI asked the California court to “compel arbitration based on the arbitration agreement and policy” in its employee handbook (Askanas, 2013). The courts denied the request and actually found the arbitration agreement and its policy as “unconscionable and was illusory because CSI could change the policy in the handbook at its discretion (Askanas, 2013).” However, this case would have been overturned if CSI’s changes in handbook implied they were made in good faith and fair dealing, the contract would have been

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