In today’s economy, companies need to focus on recruiting and retaining the best high-level talent. One way to do this is to leverage executive compensation offerings to maintain a competitive edge. Weinberg Law Firm understands the importance of effective employment plans/executive contracts. We offer a comprehensive approach, starting with drafting, negotiating, and/or reviewing an executive contract which likely will deal with such matters as base salary, annual raises, bonuses, stock options or equity, benefits, job responsibilities and severance pay.
Additionally, Weinberg Law Firm will advise clients on how to negotiate a favorable contract on additional points such as length of contract, grounds for terminating employment, limitations on job transfer, telecommuting, reimbursement for moving expenses, protecting customer lists and intellectual property and addressing conflicts of interest involving simultaneous employment or side businesses.
Q. Do I need a lawyer to review my contract before I sign it?
Yes. The number one mistake an employee can make is to sign an employment contract without seeking legal counsel beforehand. Often the employee fails to ask for contract terms that will protect what he brings to a new job. For example, if an employee brings his customers with him to a new job, he must have the employment contract exclude these customers from being considered the new employer’s customers. Otherwise, when the employee leaves the company and tries to take those customers with him, the company has a claim that those customers are no longer his to take. The cost of litigating over this dispute will be far greater than the cost of seeking legal counsel to review the employment agreement before signing it.
Q. I have an employment contract that states it is for a one (1) year term. Does that mean the company must employ me for one year?
Not necessarily. The contract may provide that the company may terminate the agreement for any reason after providing an employee 30 days notice. In such a case, the employee only has a 30 day term contract, not a one (1) year contract.
Q. I have a contract that states the company will “consider” me for bonus payments. Does this mean it is obligated to pay me the bonus payments?
No. Such language only obligates the company to consider you for possible payment. The company can simply state they considered you and decided not to pay you any bonus payments. More specific language is needed to guarantee an employee will receive bonus payments.