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Employment Contracts

Manager’s waffling can invalidate otherwise-Legitimate arbitration policy

11/01/2007

Texas employers that want their employees to give up the right to take employment disputes to court must make sure they are clear about that intention. Although employees don’t actually have to sign the agreement to arbitrate, they must understand that the agreement is a condition of employment …

Pay correct, timely wages in NC or risk double damages

10/01/2007

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?

10/01/2007

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 …

OWBPA doesn’t cancel out courthouse-Step settlements

10/01/2007

The federal Older Workers Benefit Protection Act (OWBPA) requires employers to give older workers at least 21 days to consider the offer if any termination or severance-pay agreement asks them to give up their right to sue for age discrimination. But fortunately, once the case is in court, there’s no waiting period …

Despite contract, union members can sue directly

10/01/2007

If you think you can prevent employees from suing you directly by negotiating a union contract specifying that all employment disputes go to arbitration, think again. Even if the collective-bargaining agreement specifies that every employment-law dispute will be arbitrated, your employees still can go to state or federal court with their claims …

Geeks in trench coats? L.I. firm alleges software spying

10/01/2007

CA Inc., a software company in Islandia, has filed a $200 million lawsuit against rival Rocket Software of Newton, MA, alleging Rocket stole computer source codes and other trade secrets from CA and used the information to develop almost identical products …

Is your arbitration clause broad enough to protect you?

10/01/2007

If you use an arbitration clause to limit federal lawsuits, now is a good time to review the terms. As an employer in the 11th Circuit, you can require employees to arbitrate just about any employment dispute. That can be a distinct advantage, especially as more and more attorneys representing employees push for class-action lawsuits. If employees agree to arbitration, it’s far less likely the case will mushroom to include all similarly situated employees …

Watch what you promise: Michigan employment contracts can be oral

10/01/2007

In Michigan, employers and employees can enter into employment contracts without using written agreements. As long as one of the parties can prove what the terms of the agreement are, a court may enforce the agreement. One way to protect your organization is to have all new hires sign an acknowledgment that no oral promises are binding, and that all contracts must be in writing …

New Jersey cracks down on employers that misclassify employees

10/01/2007

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?

10/01/2007

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