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Nelson v. Watch House International, L.L.C., (No. 15-10531)

Articles Discussing Case:

Arbitration Plan Contained in Employee Handbook Enforceable? Not Without Savings Clause, Fifth Circuit Says

Ogletree Deakins • April 20, 2016
In Nelson v. Watch House International, L.L.C., (No. 15-10531), the Fifth Circuit Court of Appeals reversed a district court decision dismissing an employee’s lawsuit against his employer and compelling arbitration. The Fifth Circuit held that the employer’s arbitration agreement, contained within its employee handbook, failed to include a Halliburton-type savings clause that required advance notice before termination of an arbitration agreement became effective—and thus the agreement was illusory and unenforceable.

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