Judge Lawrence Kahn
Jo-Ann hired Hanifan in 2000. Its 1998 and 2005 handbooks contained a disclaimer stating that it could not be relied upon to create any contractual rights. In 1998 and 2005 Hanifan acknowledged her employee at-will status. Jo-Ann’s 2009 handbook and business conduct code included a disclaimer identical to the 2005 disclaimer covering its right to change its policies, the non-contractual nature of its handbook, and employee at-will status. Hanifan’s 2011 suit—removed from state court—alleged retaliation for reporting employees’ breach of the 2009 conduct code. The court granted Jo-Ann judgment on Hanifan’s claim of breach of implied contract arising from its handbooks and conduct codes. The acknowledgements and disclaimers covered the codes because: both applied to “policies” covered or included in the handbooks, and the codes and their provisions constituted policies that “[Hanifan] could not rely upon as creating any rights, contractual or otherwise.” Moreover, the joint distribution of the codes and handbooks further emphasized the applicability of the disclaimer language to the codes. Jo-Ann’s explicit reservation of the right to unilaterally modify its policies at any time also rendered any reliance on the codes unreasonable.
