Employment contract lawyer
Oak Brook employee contract lawyer
Growing a business is really exciting— and can be really scary. For real business growth, hiring employees is inevitable, and employment agreements play an important role.
Having an employment agreement not only protects your business but also is a great way to ensure that everyone’s rights and duties are clearly spelled out so as to avoid any misunderstanding in the future.
Different states also vary greatly in their regulations. Illinois, for example, is generally pro-employee. Florida, on the other hand, is more employer-friendly.
Employment agreements are also a tool to attract high-quality employees. Many employers provide benefits such as profit-sharing, health insurance, paid time off, and bonuses. Putting those terms in the employment agreement is a great way to attract and keep key employees.
Motiva Business Law helps businesses and employers, just like you, write employment agreements so your business can focus on talent acquisition and not lawsuits.
Motiva Business Law Offers
- Employee handbooks
- Vendor agreements
- Client agreement
- Master Service Agreements (MSAs)
- Operating Agreement
- Shareholder agreement
- Corporate Bylaws
What should employers consider when writing an employment agreement?
Employee agreements not only are legal documents but also a way to set the employer’s expectations of employees when working. Terms to consider are:
- Duties of employees
- Representations of employee’s skills and certifications
- Permission to use employee’s likeness for marketing material
- Confidentiality
- Non-compete clause
- Non-solicitation of clients and employees
- Attorney’s fees award in case of a lawsuit
- Benefits
- Paid time off and unpaid time off
- Bonuses
- Profit-sharing
- Employee stock ownership plan
It is very important to consult a business lawyer and take into consideration state-specific laws before including certain terms. For example, in Illinois, there are strict rules against requiring certain employees to sign non-compete agreements. Also, some states – and even some towns – require employees to give paid or unpaid time off. Lastly, not all types of talent need the same incentives.
Protecting Your Business with Non-Compete Agreements
Non-compete agreements are one of the most highly litigated and controversial parts of employee agreements. In Illinois, under the 2021 Illinois Freedom to Work Act, employers cannot require employees who earn less than $75,000 to sign a non-compete agreement. A violation of this law can result in fines in the tens of thousands. In addition, the non-compete clause has to be reasonable and overly strict.
In Florida, on the other hand, there is little regulation around non-compete clauses in employee agreements. However, non-compete clauses still must be reasonable and some courts will intervene to “red line” the clause if there is a lawsuit.
Again, this is why it is important to speak with a business law attorney about your employment agreement or employee handbook before asking your employees to sign.
If you have questions about the rules around employment agreements, contact Motiva Business Law to schedule a consultation.
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Employee Agreement FAQ
Employers do not need employee agreements. In some states and circumstances, they are actually not recommended. However, if you want to have clear terms or require employees to do certain tasks or obligations, it is better to have one. It is best to consult a business law attorney.
The Fair Labor Standards Act (FLSA) is the main federal law that protects employees’ rights surrounding work conditions and wages. States also have their own laws as well. The respective departments of labor can sue an employer for violations, often without the employee having to pay a lawyer. This is all the more reason to follow the law — because a lawsuit will cost the employer and business more than the employee.
Employers can sue employees if the employee is found to be harming the business. A written employee agreement gives the employer rights that are otherwise non-existent. Also, if an employer has been diligent about following employment laws, the business and employer have less risk of a countersuit from the employee.