Supplemental materials for LEAP 2025 session The Handbook Workshop
Your employee handbook probably includes a disclaimer stating that it is not a contract. But beware: A single disclaimer at the front of the book isn’t enough, especially if other handbook language appears to make promises you are not prepared to honor.
Recent case: Donald worked for the city of Plainview, Minn., for more than 30 years. The city’s employee handbook included this disclaimer: “The purpose of these policies is to establish a uniform and equitable system of personnel administration for employees …. They should not be construed as contract terms.” Later language added that the handbook “is not intended to create an express or implied contract of employment between the City of Plainview and an employee.”
The leave policy in the handbook stated, “When an employee ends their employment with the City, for any reason, 100% of accrued unused personal leave time will be paid up to 500 hours, unless the employee did not give sufficient notice.”
When the city fired Donald, he had accrued almost 1,800 hours of unused personal leave. He sued, claiming the city had to pay out the accrued leave.
The case went all the way to the Minnesota Supreme Court, which decided the disclaimer was ambiguous as applied to the very specific payout promise. It wrote that if “the City truly wanted to preserve the right to withhold accrued PTO … it should have been more precise and clear about that intent.” It ordered a trial. (Hall v. City of Plainview, Minnesota Supreme Court, 2021)
Advice: Search your handbook for any language that could conceivably be interpreted as a promise. Either revise it or get rid of it.
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