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What colorful method does Claire Miley use to keep up with the latest healthcare regulations as they relate to proposed transactions? Find out more>

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On December 1, 2016, Parker Hannifin Corporation and CLARCOR Inc. announced that the companies have entered into a definitive agreement under which Parker will acquire CLARCOR for approximately $4.3 billion in cash, including the assumption of net debt. The transaction has been unanimously approved by the board of directors of each company. Upon closing of the transaction, expected to be completed by or during the first quarter of Parker’s fiscal year 2018, CLARCOR will be combined with Parker’s Filtration Group to form a leading and diverse global filtration business. Bass, Berry & Sims has served CLARCOR as primary corporate and securities counsel for 10 years and served as lead counsel on this transaction. Read more here.

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Securities Law Exchange BlogSecurities Law Exchange blog offers insight on the latest legal and regulatory developments affecting publicly traded companies. It focuses on a wide variety of topics including regulation and reporting updates, public company advisory topics, IPO readiness and exchange updates including IPO announcements, M&A trends and deal news.

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Labor Talk Blog: Arbitration Provision in Employee Handbook Not Enforceable

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November 30, 2015

Employers should not rely on handbook provisions to create enforceable obligations on employees.  The employers who do so took another loss recently. In Lorenzo v. Prime Commc'ns, LP, 2015 BL 386874, 4th Cir., No. 14-1622, 11/24/15, the federal Fourth Circuit Court of Appeals ruled that an arbitration provision, contained in an employee handbook, was not enforceable. The provision, said the Court, did not require an employee to take her wage and hour claims to arbitration. Rather, the employee was free to pursue those claims – including a collective action – in federal court.

Why was the arbitration provision not enforceable? Because, the handbook acknowledgement (as most do) expressly stated that the handbook was not intended to create an employment contract or to hold the parties to binding promises. Here, the employer wanted to maintain the flexibility to change its handbook policies when and as needed. That is a wise practice. However, such a provision in a handbook means that employees too are not "bound" by handbook. When the handbook says expressly that it does not impose contractual obligations or enforceable promises, that means the handbook does not bind the employer (and employers are wise to preserve that flexibility), but it also means the handbook cannot bind the employee either (hence, this ruling).

Employers who wish to impose binding obligations on employees should do so through separate written agreements, and not by using handbook provisions that almost universally say they are not intended to be binding obligations on the parties.

For more labor and employment information, visit www.BassBerryLaborTalk.com.


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