With the New Year (2022) just around the corner, now is a great time to review your employment contracts. In the State of Florida, the default arrangement is that employment is “at will,” which means that employers don’t need to cite specific grounds for termination. At will employment carries other implications as well, but perhaps the most important implication relates to grounds for termination. In this post, we will identify a few areas which you can review in your employment contracts to ensure that these agreements are maximally beneficial.
Review Grounds for Termination
Naturally, you should take time to review the most critical element of your employment contracts. When you give someone an employment contract, you are essentially giving them a big advantage over traditional employment arrangements from the outset. Many employees would prefer to have a contract rather than at will employment, but not all employees have this advantage. Remember, although worst case scenarios are not the most likely scenarios, you still need to plan for unpleasant possibilities, and this planning should be integrated into your grounds for termination. We can all imagine a scenario in which a new employee exploits his or her employment arrangement – putting in lower quality work than expected, bending the rules, taking advantage of generous company offerings, etc. Basically, you want to craft your grounds for termination in a way which will prevent exploitation from an employee. The best way to do this is to obtain the services of a capable employment attorney.
Review Non-Compete Clauses
Another area which you should review is your non-compete agreements (or clauses). Non-compete agreements (NCAs) are frequently used by employers in order to prevent employees from unfairly benefitting rival companies. In some cases, former employees may work for competitors in the same industry; when this happens, there is the possibility that trade secrets, confidential information, or other sensitive data will be leaked. Non-compete agreements prevent this type of occurrence. However, you need to understand that these agreements need to be designed very carefully, because an overly-broad or otherwise unfair non-compete agreement may be unenforceable. You need to enlist the help of an employment attorney who is familiar with the nuances of NCAs here in the State of Florida.
Review Your Compensation & Benefits
Every employment contract you sign should be tailored for the particular situation in which it is being used. In other words, you should never use a “standard” employment contract which isn’t regularly updated and adjusted for the current circumstances. This is true for essentially every aspect of the contract. So, you should regularly be reviewing and updating your compensation and benefits. Are your compensation packages competitive and up-to-date with the labor market? Or are they overly-generous? The same is true for benefits. Are you providing enough benefits to attract the kind of talent you desire? Your compensation and benefits are as essential as any other aspect of your employment contract.
Contact the Trembly Law Firm for More Information
These are just a few of the areas of your employment contracts which you should definitely review when the New Year rolls around. These contracts can have a major impact on the viability of your business, and so reviewing these contracts periodically is very critical. To learn more, visit the Trembly Law Firm today by calling 305-985-4580.
Trembly Law Firm
9700 South Dixie Hwy Penthouse 1100
Miami, Florida 33156