Under Washington State laws, are employee-handbook promises enforceable, when they address specific treatment in specific situations on which an employee justifiably relies? Here’s my point of view.
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THE AT-WILL EMPLOYMENT DOCTRINE
“Generally, an employment contract indefinite in duration is terminable at will.” Mikkelsen v. Public Utility District No. 1 of Kittitas County, 189 Wn.2d 516, 540 (Wash. 2017) (citing Thompson v. St. Regis Paper Co., 102 Wn.2d 219, 223, 685 P.2d 1081 (1984)). According to the “at-will” doctrine, an employer can discharge an at-will employee for no cause, good cause or even cause morally wrong without fear of liability. See Ford v. Trendwest Resorts, Inc., 146 Wn.2d 146, 152, 43 P.3d 1223, (Wash. 2002) (citing Thompson v. St. Regis Paper Co., 102 Wash.2d 219, 226, 685 P.2d 1081 (1984)) (internal quotation marks omitted). Conversely, an employee has the absolute right to quit his or her employment at-will. See id. However, there are three recognized exceptions to the general at-will employment rule: (1) Statutory; (2) Judicial and; (3) Contractual.
EXCEPTION TO THE AT-WILL EMPLOYMENT DOCTRINE: EMPLOYEE HANDBOOKS: PROMISES OF SPECIFIC TREATMENT IN SPECIFIC SITUATIONS
“[U]nder certain circumstances, employers may be obligated to act in accordance with policies as announced in handbooks issued to their employees.” Mikkelsen, 189 Wn.2d at 539-40 (internal citations and quotation marks omitted). For example, “if the employer has made promises of specific treatment in specific situations on which the employee justifiably relies, those promises are enforceable and may modify an employee’s at-will status.” Id. at 540 (internal citation omitted).
ELEMENTS OF THE THEORY
“Under this theory, [a plaintiff] … must show [the following:]
[a)] … that a statement (or statements) in an employee manual or handbook or similar document amounts to a promise of specific treatment in specific situations, …
[b)] that the employee justifiably relied on the promise, and …
[c)] that the promise was breached.
Id. (internal citation and quotation marks omitted) (paragraph formatting added).
CONSIDERATIONS
1. The Crucial Question
“[T]he crucial question is whether the employee has a reasonable expectation the employer will follow the discipline procedure, based upon the language used in stating the procedure and the pattern of practice in the workplace.” Id. (internal citation omitted) (alteration in original).
2. Questions of Fact
“[W]hether an employment policy manual issued by an employer contains a promise of specific treatment in specific situations, whether the employee justifiably relied on the promise, and whether the promise was breached are questions of fact.” Id. (alteration in original) (internal quotation marks and citation omitted). “Therefore, summary judgment is proper only if reasonable minds could not differ in resolving these questions.” Id. (internal citation omitted).
3. Ambiguous Discipline Policies Create Issue of Fact
“The Court of Appeals has held that ambiguous discipline policies create an issue of fact as to whether the employer made a binding promise to follow certain discipline procedures.” Id. at 543 (internal citations omitted).
4. Summary Judgment May Not Be Appropriate When Discretionary Language Negated by Other Representations
“[T]he presence of discretionary language may not be sufficient for summary judgment when other representations negate that language.” Id. at 544 (referencing, e.g., Swanson v. Liquid Air Corp., 118 Wn.2d 512, 532, 826 P.2d 664 (1992) (“We reject the premise that this disclaimer can, as a matter of law, effectively serve as an eternal escape hatch for an employer who may then make whatever unenforceable promises of working conditions it is to its benefit to make.”)) (internal quotation marks omitted).
CONCLUSION
Under the Washington State law, “if the employer has made promises of specific treatment in specific situations on which the employee justifiably relies, those promises are enforceable and may modify an employee’s at-will status.” Mikkelsen v. Public Utility District No. 1 of Kittitas County, 189 Wn.2d 516, 540 (Wash. 2017) (internal citations omitted).
RELATED: Read more about this topic by viewing our article entitled: Unenforceable Employment-Contract Provisions and Discrimination Claims.
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