Legal Environment 5th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 8

YOU BE THE JUDGE WRITING PROBLEM FedEx gave Marcie Dutschmann an employment handbook stating that (1) she was an at-will employee, (2) the handbook did not create any contractual rights, and (3) employees who were fired had the right to a termination hearing. The company fired Dutschmann, claiming that she had falsified delivery records. She said that FedEx was retaliating against her because she had complained of sexual harassment. FedEx refused her request for a termination hearing. Did the employee handbook create an implied contract guaranteeing Dutschmann a hearing? Argument for FedEx: The handbook could not have been clearer-it did not create a contract. Dutschmann is an employee at will and is not entitled to a hearing. Argument for Dutschmann: FedEx intended that employees would rely on the handbook. The company used promises of a hearing to attract and retain good employees. Dutschmann was entitled to a hearing.