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Employment Contracts

Review your severance packages; EEOC tightening scrutiny

12/01/2006

When employers offer severance packages, they often ask employees to waive their rights to sue the employer. That’s a smart strategy, but small discrepancies in the agreement’s wording can make the difference between a successful severance package and a call from the EEOC …

Build a Sturdy ‘Escape Hatch’ Into Your Organization’s Discipline Policy

12/01/2006

Does your employee handbook outline a progressive discipline process and also include a contract disclaimer? If so, you may think the disclaimer prevents employees from claiming that the discipline policy was a "contract" that can’t be skipped over in favor of instant termination. But you’d be wrong …

Oral promise of extra pay is as binding as contract

12/01/2006

In Georgia, employers that promise to pay a bonus, commission or other extra compensation to employees had better be prepared to follow through. Even though those promises aren’t in writing, employees may be likely to hold you to any supervisor’s spoken promises …

Make sure your arbitration agreement is valid in Texas

12/01/2006

Arbitration agreements, in which employees give up their rights to go to court and instead submit their cases to arbitration, can be a great way to avoid unpredictable juries, negative publicity and the expense of a full-blown lawsuit. But if the agreement isn’t worded just right, you may end up with more expense and lost time rather than less …

Texas Supreme Court eases limits on noncompete pacts

11/01/2006

If you’ve shied away from using noncompete clauses with employees in the past due to the unpredictability of their legality in Texas, it’s time to rethink that strategy. Reason: The Texas Supreme Court last month reversed its 12-year-old precedent on compete contracts for at-will employees, and the news is good for Texas employers …

Review job contracts carefully after a merger

11/01/2006

In this age of mergers and acquisitions, it’s increasingly common for employees to find themselves employed by a different entity almost overnight. When such changes take place, the new organization will often rewrite employment contracts or noncompete and trade-secret agreements to reflect the new employment reality. If you do update and rewrite such employment contracts, be sure to include a statement that the agreement is the entire understanding between the parties. If you don’t, you may find your organization also bound by the terms of any earlier agreement …

Rethink noncompete contracts after big Supreme Court ruling

11/01/2006

A significant Texas Supreme Court decision handed down last month makes it easier for employers to write and enforce noncompete agreements in Texas. The ruling, ASM v. Johnson and Strunk & Associates, provides important protection for businesses that want to use noncompete agreements to limit unfair competition from former employees …

Carefully craft an escape clause in all job contracts

11/01/2006

If you use employment contracts for independent contractors or senior-level managers, make sure those contracts contain enough "wiggle room" to terminate for cause based on your subjective performance assessment …

Contracts should agree to litigate disputes in N.J.

11/01/2006

If you use independent contractors or have your employees sign any type of employment contract, make sure those agreements state that both parties agree to litigate any disputes in New Jersey. If the contract is silent on the issue—or, worse, says the lawsuit forum must be California or another inconvenient place—you may end up spending thousands of dollars on travel and lost time …

Go After ‘In-House Hackers’ Using State and Federal Law

10/01/2006

The so-called paperless society ushered in by the computer age may mean fewer file cabinets and storage rooms full of paper records, but storing company records on hard drives has its own set of problems …