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Employment Contracts

Why you need a forfeiture clause in every job contract

08/01/2004

If your organization writes employment contracts for key employees, it may be making one costly mistake: unconditionally guaranteeing salary and benefits to employees, even if they commit misconduct that would warrant firing …

Resignation Notice Policy May Not Be Enforceable

08/01/2004

Q. Is it legal to require management employees to give us a longer resignation period than other employees? —M.L., Missouri

Don’t stretch truth in exchange for lawsuit waiver

07/01/2004
Issue: When will a court hold you to an employment contract? Risk: Promising a former employee that you’ll fudge the truth on job references in exchange for a lawsuit waiver …

Use severance as a hiring tool; more applicants ask

07/01/2004
Issue: Survivors of recent layoffs are asking about severance plans before signing on. Benefit: More than ever, a good severance plan can help lure the best candidates. Action: Trumpet …

Preserve at-will rights by ditching your employee probation period

06/01/2004
If your employee handbook or job-offer letters say new hires will face a 60- or 90-day probation period, you should consider dropping that policy or, at the very least, referring to …

Continued employment may be enough to make noncompetes legal

06/01/2004
If you ask employees to sign an agreement not to compete with your organization for a certain length of time after they leave, the agreement isn’t binding unless you offer the …

Supreme Court expands filing window in ‘Section 1981’ cases

06/01/2004
The U.S. Supreme Court last month set a four-year statute of limitations in so-called “Section 1981” discrimination cases.
While most employees file discrimination cases under Title VII of the Civil …

Your probation period: a lawsuit waiting to happen

06/01/2004

If your employee handbook or job-offer letters say new hires will face a probation period of, say 60 or 90 days, you should consider dropping that policy.

Give employees advance notice of pay changes

06/01/2004
Issue: Should you provide notice about commission-formula changes that could alter employees’ pay? Risk: If you rework pay formulas behind employees’ backs, you could bump up against state wage laws. …

To keep noncompetes legal, include fair restrictions

06/01/2004
Issue: Noncompete agreements are more easily signed than enforced. Risk: One sure way to crush your noncompete’s legality is to include overly restrictive time and geographical limits. Action: Make …