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29 Berkeley J. Emp. & Lab. L. 345 (2008)
The Inevitable Demise of the Implied Employment Contract

handle is hein.journals/berkjemp29 and id is 349 raw text is: The Inevitable Demise of the Implied Employment Contract By Jonathan Finemant In this article, Professor Fineman argues that courts' decision in the early 1980s to apply implied contract doctrine to employment relationships did not have the intended results. Employers immediately began restructur- ing their employment documents, and eventually found a way to essentially avoid liability through careful drafting of personnel documents. Professor Fineman further argues that the failure of contract law was inevitable based on the limitations of contract theory. Finally, Professor Fineman suggests a method to more successfully enforce workplace norms by look- ing to broader-based norms prevalent in the industry or applicable to the type ofjob position at issue, I. IN TRODU CTION .............................................................................. 346 II. THE COMPLEX WORKPLACE-NORMS AND REGULATION ............ 350 A. The Construction and Effect of Workplace Norms ................ 351 B. Voluntary Adherence to Workplace Norms ........................... 354 III. EARLY IMPLIED CONTRACT CASES IN CALIFORNIA ...................... 356 A . The Law Evolves .................................................................... 357 B. The California Supreme Court Speaks ................................... 361 IV. EFFECTS OF THE IMPLIED CONTRACT DOCTRINE .......................... 365 A. Actions and Reactions-the Employers Act .......................... 365 B. Additional Employer Strategies .............................................. 368 C. Employers Abandon the Field ................................................ 372 D . The Courts Respond ............................................................... 375 V. PRIVATE CONTRACT IS THE WRONG REMEDY .............................. 377 A . The Lim its of Contract ........................................................... 378 1. The Power of One-Sided Drafting ................................... 378 Assistant Professor, Florida A&M University College of Law. Email: jonathan.fineman@FAMU.edu. I would like to thank a number of people for their comments and suggestions, including professors Robert Ahdieh, Rachel Arnow-Richman, Roberto Corrada, Melissa Hart, Martin Katz, Risa Liebowitz, Stewart Macaulay, Elizabeth Mertz, Scott Moss, Nantiya Ruan, Teemu Ruskola, Robert Schapiro, Charles Shanor, Catherine Smith, and Katherine Stone. I would especially like to thank Professor Martha Fineman for her invaluable assistance and encourage- ment.