Employment Contracts

01/03/2010

HR Law 101: Some employers and employees choose to enter into an employment contract. Usually the worker is seeking job security, while the company wants to protect its trade secrets and sales territories. However, if you sign an employment contract, you may find that you’ve given away more than you bargained for …

Design restrictive agreements that protect you—and stick in court

12/15/2009

Do you rely on restrictive agreements (also known as noncompete agreements) to prevent employees from working for the competition and stealing your customers? If so, now is a good time to make sure those agreements will stand up in court.
A recent 11th Circuit Court of Appeals case, Proudfoot Consulting Co. v. Gordon, illustrates the obstacles and complexity that can trip up employers that take former employees to court.

How to ensure settlements are the last word: Ask lawyer to draft all agreements

12/15/2009

The last thing you want after settling a discrimination or harassment complaint is for the case to rear its ugly head again. That’s why settlement agreements should include clear language releasing you—the employer—from any further liability. Your best bet: Have your attorney prepare all your settlement agreements to make sure they meet state and federal laws.

Review anti-discrimination practices to make sure they cover contract employees, too

12/09/2009

Employers sometimes erroneously assume that employees working under a set-term employment contract don’t have any rights once the contract expires. That’s simply not true. In fact, refusing to entertain a contract renewal for a discriminatory reason can be the basis for an employee’s lawsuit.

Do you need a ‘no forwarding’ e-mail policy?

12/09/2009

Here’s a potential electronic communications problem you may not have considered. An employee who forwards e-mail from a company computer and e-mail account to his personal address may end up using those e-mails later in litigation against the company. That’s one reason it makes sense to prohibit employees from forwarding e-mails to their personal e-mail accounts.

Double-check all commission agreements! You could be liable for more than you think

12/09/2009

If you pay commissions under a written compensation plan that covers commissions earned only while the employee works for your company, be careful how you handle terminations—and discussion concerning payment of further commissions. In some circumstances, you could inadvertently create additional liability for unpaid commissions …

Are there alternatives to noncompete agreements?

12/08/2009

Q. I have certain employees that I don’t want leaving my business to work for a competitor. I am leery about using a noncompetition agreement because I know that courts can be hostile toward them. I understand they can cost a lot of money in legal fees to enforce. Are there any alternatives for me to consider?

Oral agreements may be too vague to be enforceable

12/03/2009

Oral agreements are as binding as written ones, but they can be considerably less precise. Consider this case, in which a disgruntled employee claimed an oral agreement affected future compensation:

Draft arbitration agreements as broadly as possible

11/11/2009

If your organization uses arbitration agreements to help keep employment disputes out of court, make sure the agreement is drafted to be as broad as possible. Your best bet: Have an attorney write or review the agreement.

Beware promises about schedules, retention that could create an employment contract

11/02/2009

Texas is an at-will employment state, which means employers are free to fire employees for any nondiscriminatory reason unless an employment agreement or union contract specifically says otherwise. But what if an employer promises an employee a better schedule or that she’ll be retained for a specific period of time? Does that create a contract, thus jeopardizing at-will status?

Employment Contracts