New Employer not saved when updating Individual contact record

For an existing Individual contact record which includes a populated Employer field, if one edits said contact record and changes the Employer field to a new (not currently existing employer) and Saves, the message "Your Individual contact record has been saved" appears, but, the Employer is not updated.

Verified on the 3.2 Sandbox. http://sandbox.civicrm.org/civicrm/contact/view?reset=1&cid=5846