
Employment Agreement
An Employment Agreement is crucial to securing your business, along with your employees. This kind of contract produces legal duties and characterizes contractual union involving companies and workers. Often times, employment agreements are not created equally and they could cause harm. When employing new workers, make sure that the agreement has included the expectation of both sides. I have included here some tips that you need to be aware of when drafting an employment agreement for your new hires.
1. Work description. An employment agreement should provide a breakdown of the employee’s assignments. For instance, what should be the job title of the newly hired employee? What are the tasks? Are there any guidelines that regulate the duties of an employee?
2. Classification of employment. Recognize the new hire as an employee to prevent the accusation of misclassification. Furthermore, take a look at your company’s procedures to guarantee that they correspond with the Internal Revenue Service and Department of Labor’s regulations concerning the appropriate classification of employees. Discuss this classification along with its consequences to your new hire to prevent any possible conflict.
3. Salary. This is the most important element of an employment agreement that when mismanaged, can trigger potential litigation. Indicate the amount of money that will be paid for the employee including its intervals. Will the employee get payments each week or twice a month? Are there any raises or incentives given to employees? Make sure that this information is discussed, approved, and documented from the start.
4. Compensation. The employment agreement must identify other benefits that an employee should receive along with the employee’s obligation associated with those benefits.
5. Termination Clause. This is one of the most important parts of an employment agreement that is often disregarded. The termination clause declares the reasons that will allow both parties to terminate or end the agreement. For companies or business owners who employ workers on an at-will basis, the termination should indicate that they are free to terminate an employee at any time.
6. Settlement on disputes. As the employer, planning on a resolution on how you will handle possible conflicts will save you time, money, and other resources just in case an issue will occur involving the staff and the company. Decide on the scope and range you would want to use secondary dispute resolution options such as arbitration as well as mediation and include them in the employment agreement.
7. Confidentiality including intellectual property concerns. Employees have exclusive entry to the trade secrets of the company and intellectual property. You can use the employment agreement to lawfully oblige employees to retain privacy to information that is exclusive to your business. Also, make sure to claim your ownership of intellectual properties developed under you during employment.
8. Applicable law. You should indicate in the employment agreement what state law and jurisdiction regulates the agreement. This is crucial when employees work remotely or are working from another location.
Is An Employment Agreement Enforceable?
Employment laws differ from each state. Some provisions indicated in your employment agreement might affect the enforceability of the contract. For instance, restrictive covenants are usually provisions that prohibit previous workers from pursuits such as rivaling the company/ business or taking customers or staff through the company.
On the other hand, in states like Miami or Florida, an employment agreement that prevents rivalry is regarded as against public policy and considered void as well as unenforceable. When you added restrictive covenants in the employment agreement and you reside in Miami or Florida, your agreement might bring you to harm instead of protection.
How Can I Assist You?
As a business lawyer, I truly understand the difficulties of employing new staff. I can help you assess your employment contract that corresponds to the applicable state law and guarantee that it is enforceable. You can contact me today at (305) 921-0440 or you can also email me at Romy@jflawfirm.com to schedule a consultation.