Help Figuring Out Intricate Employment Agreement Issues

At Cavitch Familo & Durkin, our approach to employment agreements is that they are often useful and sometimes essential. Written employment agreements can help both employers and employees have a more secure understanding of job responsibilities and expectations. These agreements require careful conversations and drafting to ensure that they provide clarity and protection for employers and employees.

The employment lawyers at Cavitch have vast experience helping employers and employees create and negotiate these agreements. We’ve been helping clients throughout Cleveland and Cuyahoga County Ohio and nationally figure out these matters and stay informed of changes in the law that impact employment agreements. make sure their employment agreements are secure for decades. We’re here to answer your questions and help make sure your company is well protected.

What Is An Employment Agreement?

An employment agreement is a contract between an employer and employee that outlines and defines the conditions of employment. These contracts promote clarity in the employment relationship and may provide important protections for employers and employees.

A typical employment contract includes a variety of components, all designed to protect your company and ensure your employees have a comprehensive idea of their responsibilities. Many employers choose to include items such as:

• Confidential & Trade Secret Information: Prevents employees from sharing confidential business and trade secret information about their employer, their job and the company at large.
• Trade secrets: Another type of confidential information that includes intellectual property – commercially valuable information that can be sold or licensed
• Noncompetes: Prevents employees from competing with an employer after their employment at the company ends – this can outline how long an employee cannot work for a competitor or in a specific market.
• Nonsolicits: Prevents employees from soliciting your company’s clients or customers for their own benefit or the benefit of a competitor after their employment at the company ends.
• Arbitration: An employee and employer agree to binding arbitration if a dispute arises based on the employment agreement rather than file in court.
• Venue/Jurisdiction & Jury Trial Issues: If an arbitration provision is not utilized, designating a specific court venue and jurisdiction to file any disputes within is advisable. Further, employers can require employees to forego a jury trial by agreement for certain claims.
• At-Will Employment: Ohio is an at-will employment state. This means that employers can fire an employee for any lawful reason, or no reason. Similarly, employees can resign from employment at any time, for any reason. Many employers are hesitant to enter into employment agreements with employees because they think that an agreement alters the at-will nature of employment. This is not true, and employment agreements offer an employer the opportunity to affirm the at-will nature of an employment relationship.
• Agreements for a Term: In some cases, particularly involving executive personnel, the contract may be for a specific period of time. In this case, the parties should clearly specify the basis for termination or resignation.
• Separation Terms: Particularly with executives or higher-level employees, the employer may provide severance payments and other post-employment consideration.
• Other Compensation Matters: In some instances, employees receive additional compensation such as bonuses, retention and “stay-put” incentives, change in control (i.e. sale of the business) matters, and stock options and/or phantom stock provisions. These and other matters require informed and often innovative solutions that take into account the needs of the business and the employee, including potential tax considerations.
• Separation Agreements: A specific type of employment agreement that outlines the terms that should be followed if the employee is let go or terminated for any reason – can outline severance, continued benefits and prevent litigation.
• Employee Handbooks: Although employee handbooks are not technically employment agreements, employee handbooks establish company policies in a clear and organized manner for employees. Important provisions in employee handbooks include harassment reporting procedures and requirements, payroll information and incorrect pay reporting, and workplace accident reporting procedures.

An employment agreement can be an important tool for employers, as it provides clarity and a framework for handling many different employment issues. Further, it is important for employees to carefully read and understand employment agreements, as it define the employment relationship and the process when disputes arise.

The Value Of An Experienced Employment Agreement Attorney

When creating an employment agreement, it’s essential to have a knowledgeable employment lawyer to guide you. An experienced attorney can help ensure the terms of your contract suit your needs and are secure, fair and enforceable. A lawyer can also deal with any potential negotiations that may occur between you and your employee.

Perhaps most importantly, an experienced employment lawyer can make sure your agreement is compliant with all laws and regulations in Ohio. Employment lawyers are here to protect your company. We can also assist in creating or updating employee handbooks.

Get More Information About Employment Agreements

If you’re seeking more information or guidance about employment agreements, contact our office today. Our attorneys are well-equipped to help you figure out these matters, and we’re ready to help. Call 216-621-7860 or use our online contact form to get in touch.