|
Real estate companies generally have experienced considerable success over the past few years. Business success usually results in the need to add employees. As the number of your employees grows, you will face added risk in the area of employee claims against your company. This is the first of a two-part article addressing steps to take to minimize this risk. This part of the article discusses steps to take prior to an employee beginning employment. The next part of the article will address how to handle employment matters post-hiring.
Get a Completed Employment Application. A good employment lawyer can help you with what should be in the application.
Enter Into A Written Employment Agreement. This should include at least the following points:
1. At-will employment - Confirms the employment relationship may be terminated at any time by either party for "no cause" or "for cause", provided the termination does not violate State Law.
2. Position & Scope of Employment - Includes a description of basic performance standards.
3. Rate of Compensation. - Is the employee "exempt" or "non-exempt"? Describe what happens to the non-straight wages (i.e. bonus, commissions, profit sharing) upon termination, including the conditions upon which such compensation will be payable.
4. Termination - Reiterate both parties' ability to terminate the relationship at any time. Also, consider confirming a non-inclusive list of termination "for cause" standards.
5. Protection of Company Assets/Intellectual Property - Define the assets very broadly and reference all documents, data, software, hardware, emails, contacts, customers, client prospects, vendors, strategies etc. This protection should not be limited in duration to the term of employment.
6. Confidentiality
7. Anti-solicitation/Anti-Piracy - This section protects the employer from having a departed employee try to solicit or pirate away employees, contractors, vendors, clients, client prospects and other valuable relationships developed while in the employer's employ. Remember, covenants not to compete are extremely difficult to enforce in Arizona and are expressly illegal and unenforceable in many other jurisdictions. You should definitely seek out competent employment law counsel if you are thinking about using such a covenant.
8. Remedies - Define the parties’ remedies, including the employer’s right to obtain a temporary restraining order (without need of posting a bond). This provision may also call for the employee's payment a defined sum of liquidated damages in the event of a breach of the agreement.
9. Mandatory Arbitration of Disputes - (Excluding the employer's ability to seek a restraining order through the courts as set out in the Remedies section.) The employer should agree to pay all costs associated with any arbitration to maintain the best chance of enforceability.
10. Other provisions that should be recommended by an employment attorney.
For more information
Please contact Phoenix law firm, Tiffany & Bosco
|