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Dealership Handbooks Are Being Picked Apart

8.1.14

Whether your dealership is unionized or you’ve never had to deal with organized labor, your employment policies are more likely now than ever to be targeted by the National Labor Relations Board (NLRB). Over the past two years, the board has been increasingly aggressive in striking down auto dealership employment policies that had been legal for years.

An NLRB Administrative Law Judge (ALJ) recently ruled that the “number one Honda dealership on the planet” had some major issues with its employee handbook. While the dealership was not unionized, the ALJ found that a number of provisions in the dealership’s handbook still violated the National Labor Relations Act (NLRA). The problematic provisions included:

Employee handbooks are invaluable tools for introducing employees to the policies and expectations of a company, and they often play a key role in defeating claims brought against the company by employees. But as the above case illustrates, employee handbooks need to be updated frequently in response to developments in the law. If you have not updated your handbook in the last two years, now is a good time to reevaluate it.


For more information contact the author at MSimpson@fisherphillips.com or 404.231.1400.

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