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Employment Contracts

New Jersey cracks down on employers that misclassify employees


Warning! Employers that intentionally misclassify employees as independent contractors face new penalties in New Jersey. Employers that intentionally misclassify workers unfairly stifle business competition because the practice lets them reduce labor costs between 15% and 20%, according to some estimates. That leaves employers that don’t cheat at a competitive disadvantage. Plus, employee misclassification strips workers of benefits and disability protection, and cheats the average taxpayer out of revenue …

How can employers get waivers of claims from terminated employees?


Q. May an employer fire an employee and then ask the employee to sign a waiver of claims or severance agreement? …

Pay correct, timely wages in NC or risk double damages


North Carolina’s Wage and Hour Act says that if you fail to pay workers what they’re due, they can sue for those unpaid (or late) wages, plus a penalty of double what was due. Your only defense to double damages: proof that you acted in good faith and reasonably—a tough task …

Noncompete agreements in Indiana: When are they legal?


Many Indiana employers wisely use noncompete agreements to protect their legitimate business interests in their customer base and trade secrets. But will those agreements stand up in court? While some employers have successfully used noncompetes, others don’t believe they’re worth the paper they’re printed on. Depending on how the noncompete is drafted, either can be true …

Employee References: Sample Release Form

White Paper published by The HR Specialist, copyright 2007 ______________________ It’s a smart legal move to require employees to sign a waiver releasing your organization from liability for providing truthful employment references. The following is a sample Employment Reference Release form that was adapted from several state bar associations’ employment law groups. You can use […]

Independent Contractor or Employee? How to Make The Call

White Paper published by The HR Specialist ______________________ For years, the IRS has relied on a 20-factor test to determine whether a worker is considered an “employee” or an “independent contractor.” Conferring contractor status on a worker often benefits the employer, who is then not obligated to withhold income tax or to pay Social Security […]

The elements of a valid noncompete agreement


Q. What standards must Pennsylvania employers follow when drafting noncompete agreements? …

Are Waivers a Cure-All for Employee Lawsuits?


Q. Is obtaining a legal release from an employee in exchange for severance pay guaranteed to prevent any legal action by that person? —J.S. …

Use contractual limitations to protect company and managers


Michigan courts have generally upheld as valid and enforceable provisions within an employment application or employment contract that place time limits on when employees can sue their employers. Thus, while the statute of limitations for filing a claim of discrimination under Michigan’s Elliott-Larsen Civil Rights Act is three years, a Michigan court has upheld contractual provisions providing for a shortened limitations period of six months …

Without clause, employers can’t escape paying full wages


When it comes to employment contracts, it’s wise to include an escape clause. Here’s why: If you don’t specify that you can terminate the contract early and then find yourself having to eliminate the employee, you may have to pay that employee the full amount he or she would have earned working the entire term of the contract …