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Employment Contracts

Don’t ‘Oversell’ a job opening


Avoid the temptation to lure star applicants by painting an overly rosy financial picture of the organization or making misleading statements about job security. One faulty promise could lead to a fraud lawsuit …

Don’t break severance promise to employee

If your organization’s execs grumble about not wanting to pay a promised severance package, point them to this case: A company president refused to fully honor Donald Chisholm’s severance package as …

You can enforce ‘last-chance’ pacts with on-the-ropes employees

Last-chance agreements are signed pacts between employers and employees that provide workers accused of serious misconduct one last chance to shape up. They’re common in cases involving alcohol abuse, drug abuse …

Don’t break severance promise, you may be personally liable

A company president refused to fully honor employee Donald Chisholm’s severance agreement, even though it was clearly spelled out in Chisholm’s employment contract. So Chisholm sued for breach of contract and …

An unsigned contract can still be legally binding

Issue: Some courts consider agreements, signed or unsigned, to be valid, binding contracts.
Risk: A manager’s verbal promise could lock your company into legal agreements it must follow …

Avoid making promises that become job contracts

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Use telecommuters? Defuse 5 main lawsuit threats

Telecommuting is popular with employers and employees. Com-panies with telecommuting programs can realize productivity gains, im-proved morale …

Require staff to arbitrate disputes; court upholds ‘partially legal’ pact

Don’t be leery of requiring employees to sign mandatory arbitration agreements. As the following ruling shows, even if a court disagrees with part of your agreement, …

Don’t make promises the company might not keep

Issue: Courts will make your company follow through on oral promises you make about benefits.
Risk: You or an ill-informed manager could inadvertently force your company to provide benefits it …

Give employees advance notice of severance plans, waivers

Don’t spring severance-plan details on employees right before a layoff. The Employee Retirement Income Security Act (ERISA) says you must give employees advance notice …