Understanding Your Employment and Restrictive Covenant Agreements
Employment and restrictive covenant agreements can often be complex and challenging to navigate. Employees may encounter a variety of issues that require legal assistance to ensure their rights and interests are protected. Below are some common concerns employees might need help with:
- Ambiguity and Vagueness: Agreements may contain unclear or overly broad terms that can be difficult to interpret, leading to uncertainty about their rights and obligations.
- Non-Compete Clauses: Employees may struggle with restrictive covenants that limit their ability to work for competitors or start their own business, potentially impacting their career prospects. This has been a moving target under federal and state laws.
- Non-Solicitation Clauses: These clauses can restrict employees from contacting former clients or colleagues or contractors, which can be problematic if they wish to continue working within their industry.
- Unreasonable Restrictions: Some agreements may impose excessive restrictions that are not reasonable in terms of scope, duration, or geographic area.
- Severance and Termination Terms: Employees may want to negotiate severance terms upfront before a hostile situation arises between the employer and employee. Key legal terms to be discussed are “good reason” for the separation in order to receive severance, if any restrictive covenants would apply post-separation, and the messaging that would be provided upon separation, for example.
- Negotiation of Terms: Don’t sign an employment agreement with discussing terms with a lawyer. Employees may require assistance in negotiating or amending the terms of their agreements to better align with their career goals and personal circumstances, which should be in writing, such as amount of PTO to be provided, the complete compensation package (including health benefits and 401(k)), key job responsibilities, and any restrictive terms.
- Legal Recourse: Knowing what legal options are available if an agreement is violated or if an employee believes the terms are unfair or invalid. This should be discussed and in writing upfront in case any breach of the employment relationship occurs.
D’Andrea Law PLLC can provide experienced advice on negotiating the terms of an agreement, identify any potential risks or unfavorable clauses, and help negotiate more favorable terms. By investing in legal counsel, you can avoid potential costly misunderstandings, secure fair treatment, and enter your new role with greater confidence.