Opinion ID: 2229677
Heading Depth: 2
Heading Rank: 2

Heading: effect of web employee personnel manual.

Text: Nelson claims the WEB employee handbook created a contract to discharge for cause only. WEB claims the handbook did not apply to Nelson as a manager and further, that the book was neither detailed nor specific enough to create a contract. South Dakota law provides that employment having no specified term may be terminated at the will of either party. SDCL 60-4-4. We have carved out two exceptions to this employment-at-will doctrine in cases where implied contracts arise through the use of employee handbooks. Osterkamp v. Alkota Mfg., Inc., 332 N.W.2d 275 (S.D.1983). The two exceptions have been clearly defined by this court: First, such an agreement may be found where the handbook explicitly provides, in the same or comparable language, that discharge can occur for cause only. Second, a for cause only agreement may be implied where the handbook contains a detailed list of exclusive grounds of employee discipline or discharge and, a mandatory and specified procedure which the employer agrees to follow prior to any employee's termination. Butterfield v. Citibank of S.D., 437 N.W.2d 857, 859 (S.D.1989). In short, the handbook must contain language indicating a clear intention on the employer's part to surrender its statutory power to terminate its employees at will[.] Id. The trial court found no explicit agreement by WEB to discharge employees for cause only. Nor did the court find a sufficiently detailed list of grounds for employee discharge or a specific procedure which the employer was required to follow to imply an agreement to discharge employees for cause only. We agree. Nothing in the employee handbook created a contract of employment between WEB and Nelson. Summary judgment on this issue is affirmed.