Employment Contracts

Are noncompetes enforceable on employees who have been fired?

04/09/2008

Q. In Illinois, do noncompete agreements apply even when someone is terminated, as opposed to resigning? …

Provide real chance to weigh signing separation agreement

04/08/2008

To make a severance agreement involving older workers stick, employers have to follow the Older Workers Benefit Protection Act (OWBPA). The law prohibits releases of Age Discrimination in Employment Act (ADEA) claims unless the agreement meets very specific requirements …

Landscape changing for noncompete agreements in Texas

04/07/2008

A year and a half ago, the Texas Supreme Court clarified whether employers may require new and existing employees to sign noncompete agreements without changing their at- will status. The court concluded they can—as long as the employer provides proper consideration in return …

Contract disclaimers in handbooks preserve at-Will status

04/01/2008

While employee handbooks are essential, be careful. If they are worded improperly, they can tie employers’ hands—and may even create employment contracts that remove the at-will status that allow employees to be terminated for any legal reason …

Advice, please: How should we implement our first severance pay packages?

04/01/2008

Q. Due to economic conditions, we are planning to let go three employees from our 30-person work force. We are planning to provide these employees with four weeks’ pay if they sign a release of all claims. We have never provided severance pay before and have no policies governing the practice. What advice can you give us? …

Don’t let flawed noncompete agreement break the bank

04/01/2008

Lots of employers use noncompete agreements to protect against unfair competition from former employees. But a poorly drafted noncompete agreement—e.g., one you obtained from a form book or the Internet—may create serious legal pitfalls …

Caution on mandatory arbitration! Decisions almost impossible to overturn

04/01/2008

Lots of employers insist their employees sign agreements mandating arbitration to resolve employment law disputes. Conventional wisdom suggests that such alternative dispute resolution is less costly, less time-consuming and less risky than a jury trial. But conventional wisdom may be wrong …

Using an arbitration agreement? Keep detailed records of employee acceptance

04/01/2008

If you use an arbitration agreement or have any other contract-based arrangements with employees, make sure the company keeps all records showing when and how the agreement was presented or signed. You may need that information many years later …

Caution! Sometimes arbitration costs employers more, not less

04/01/2008

Arbitration is frequently billed as an inexpensive and quick way to handle employment law claims without incurring the high cost of litigation. That’s why many employers are so eager to have employees sign agreements that require arbitration of workplace claims. But sometimes that strategy backfires …