An arbitration agreement contained in an employee handbook was not invalid simply because the employer could change the handbook in its discretion, the California Court of Appeal has ruled. Serpa v. California Surety Investigations, Inc., No. B237363 (Cal. Ct. App. Apr. 19, 2013). Reversing an order denying the employer’s motion to compel arbitration, the Court held that the implied covenant of good faith and fair dealing limited the employer’s right to alter the agreement unilaterally; thus, the agreement was not illusory or unconscionable for lack of mutuality, as the plaintiff argued.
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