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Employment Contracts

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? …

Employee References: Sample Release Form

09/28/2007
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

09/18/2007
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 […]

Are Waivers a Cure-All for Employee Lawsuits?

09/01/2007

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

09/01/2007

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 …