Employment Contracts

Can I fire employees who may soon become competitors?

10/07/2008

Q. I just learned from a reliable source that two employees are going to start a similar business. Apparently, they have submitted paperwork that is based on the forms I used to create my own business. Is this grounds for termination? …

Is your release broad enough to bar all lawsuits?

10/01/2008

If your employees sign releases agreeing to settle minor employment-related claims out of court, make sure the language is broad enough to actually stop any further litigation …

Employer wins battle to withdraw recognition of struggling union

09/26/2008

The 4th Circuit Court of Appeals, which has jurisdiction in North Carolina, recently ruled that an employer could withdraw recognition of a union if it can present “substantial objective evidence” that most employees no longer support the union. The decision gives employers a road map for handling situations where a union has lost the backing of the employees …

No translation needed for arbitration agreements to be valid

09/22/2008

You might worry that people who don’t speak English well won’t be bound by contracts such as arbitration agreements. If applicants or employees can’t read an agreement, it would seem logical that they couldn’t agree to the terms. You have little to fear …

Calif. Supreme Court upholds strict limits on noncompetes

09/19/2008

If California employers were looking to the state Supreme Court to loosen restrictions on the scope of noncompete agreements, they will be disappointed. The court just concluded that agreements restricting the ability to practice one’s profession are generally invalid …

Ask attorney for help to make sure employment contract contains proper language

09/12/2008

If you use employment contracts, don’t be tempted to draft the agreement yourself. Doing so may mean you’ll end up with terms that go beyond what you meant. Contract law is tricky, and an experienced attorney can best guide you in creating a contract that is clear, unambiguous and complies with Michigan law …

Don’t make handbook promises you’re not prepared to keep

09/10/2008

Drafting employee handbook language can be tricky. You don’t want the whole handbook to become a binding contract, but you do want employees to understand they have to follow the rules. But you may want some sections of the handbook to be binding—such as an agreement to arbitrate any employment disputes. So what’s the best approach? …

Arbitration agreement may be used for USERRA claims

09/05/2008

While USERRA may be comprehensive and quite broad, there is at least one area that courts seem willing to concede can be changed. The 6th Circuit Court of Appeals has recently ruled that employees and employers who agree to arbitrate disputes can include USERRA claims in that arbitration agreement …

Raise arbitration early—or else find yourself in court

09/05/2008

Does your organization have arbitration agreements in place for some employees, but not others? Then make sure you keep careful track of whose cases should go to arbitration and whose should not. If one of your employees sues in court, you may lose the right to arbitration if you don’t object to the lawsuit quickly …

Weigh downsides before requiring arbitration agreements

08/25/2008

It sounds like a great idea: Instead of risking a large jury award in court, get employees to agree in advance to have an arbitrator mediate all employment disputes. But, in practice, arbitrators often bend over backward to give employees a break. Plus, an arbitrator’s decision is hard to undo …