The Role of an Employer Contract Lawyer
Employer contract lawyers provide a broad range of legal services to businesses of all sizes regarding employment law issues. Employment contract lawyers act as counselors, in addition to representing companies in disputes with employees and third-parties.
During the life-cycle of an employee, an employer contract lawyer may be involved in several different ways. Prior to hiring an employee, an employer contract lawyer may draft the agreement that outlines the terms of employment and the relationship between the employer and the employee, including the scope of activities, the term or duration of the employment, and the compensation. The employer contract lawyer may include restrictive covenants to protect the employer’s interests if the employee were to leave the employment of that business. A well drafted and legally enforceable nondisclosure clause can prevent former employees from taking confidential information to competitors. A non-compete clause may prevent former employees from working for a competitor for a certain period of time after leaving the company.
It is also important to carefully design the compensation aspect of the employment agreement . Laws against "moonlighting" in some states may have an impact on how to compensate "employees" for activities they engage in during their off hours. Employers who have employees who engage in sales, especially those that make a large number of calls outside the office, should structure their compensation plan to avoid mischaracterizing the employees as independent contractors.
Many types of compensation may be governed by different laws. Stock options plans and equity compensation are subject to many federal rules. Employees covered by collective bargaining agreements are subject to different rules as well. Individuals doing business in more than one state may require separate agreements to satisfy the requirements of each state.
The U.S. Department of Labor and the Internal Revenue Service websites have additional information on the classification of employees for both tax and labor law purposes. With the advent of the "share economy" the "contractor vs employee" debate has become even more complicated, and legal advice may be required to insure compliance with Federal and state employment laws.
The Benefits of Hiring an Employer Contract Lawyer
One of the most clear and compelling reasons to hire an employer contract lawyer is to mitigate the chance of inadvertently or intentionally entering into a contract dispute. By implementing contracts that clearly spell out the terms of your relationships with employees, such as benefits offered and non-compete clauses, you safeguard the company against forgetting important obligations or entering into a contract dispute with a current or former employee down the road.
Another benefit of working closely with an experienced employer contract lawyer is the ability to arrive at custom contracts that are tailored to fit the specifics of your business relationship. Whether you need a confidentiality agreement, a clear statement of employee obligations or termination policies, an employer contract lawyer can help you develop and implement individualized contracts for all of your business needs. And should you have to terminate a business relationship for some reason, your employer contract lawyer can help you craft the legal documentation for severance packages and terminations.
With the right employer contract lawyer, you can go beyond protecting your current employees, and create solid agreements that can serve as a preventative measure to any potential business litigation down the road. From the time that you begin forming contracts with employees, clients and other businesses, you can ensure that those agreements will hold up and protect the best interests of the company in the event that any disputes arise.
Essential Traits
The key qualities to look for when hiring an Employer Contract Lawyer are the following:
1. Contract Law Experience
The most important characteristic of any Employer Contract Lawyer is that they have the knowledge and experience to draft and negotiate contracts that effectively meet the needs of the employer. Employment law is a complex area of the law with numerous pitfalls for the unwary and it is absolutely essential that you select an attorney that has the relevant expertise to work with you to draft enforceable agreements that protect your company’s interests. It should also be noted that every jurisdiction is different in terms of its own employment laws, so you should ideally work with a lawyer that has a good understanding of the relevant employment laws in the jurisdiction(s) where you are doing business.
2. Trusted Advisor
The trusted advisor role is one of the most valuable that a business can have. That trusted advisor is typically a lawyer that understands the intricacies of your company and business model and who can be brought in at an early stage of a matter to protect your interests. A trusted advisor will take the time to learn your business and your needs so that when a complex issue arises, you have already developed the relationship of trust with that lawyer and can rely on them to provide sound, honest advice to your business.
Frequent Contract Concerns
Common issues that an employer contract lawyer may be able to help resolve require an understanding of the contract and its relationship to the greater legal landscape. Non-compete clauses, confidentiality agreements, and dispute resolution mechanisms are three such issues.
Even though non-compete clauses can be beneficial to both parties, their provisions should be clearly spelled out in the employment contract. Basic information about the clauses, which may also be called restrictive covenants, includes the scope, duration, location and type of work that will be restricted. The information should also include what happens if the employee violates the agreement and if the agreement can be modified.
In addition to non-compete clauses, employment contracts often include confidentiality clauses. These clauses protect sensitive information about the business.
Dispute resolution mechanisms might include mandatory arbitration or other forms of alternative dispute resolution. These are meant to expedite disputes between the employer and employee. Although arbitration may be less expensive and time-consuming than a lawsuit, it is not easy to appeal an arbitrator’s decision. In addition, losing one case in arbitration can easily lead to other cases in court or arbitration.
An employer contract lawyer might be required to draft employer contracts and amendments, as well as respond to and defend against legal claims that seek to invalidate a contract.
Selecting the Best Lawyer
How to Choose the Right Lawyer for Your Business
I suggest the following steps to consider in choosing the best lawyer:
- Interview the lawyer and ask for details of prior case results. A lawyer should be able to show you prior cases that are similar to yours in order to give you a general idea of what kind of results you can expect.
- Make sure you receive referrals. Verbal referrals are fine, but written ones are even better. You can also check reviews online.
- Find out about the lawyer’s fees. Getting an idea of what lawyers typically charge for their services is a great way to gauge whether you will be able to pay your attorney fees. The best lawyer in the world won’t help you if you can’t afford him or her.
- Know that fees may be negotiable. Again , the best way to obtain a deal is to review standard rates in your area. Then ask.
- Consider how much experience the attorney has. As with any profession, proficiency grows with time. More experienced attorneys have handled more cases. They may also be familiar with the judges who will oversee your case.
- Check for free consultations or ask about them. Some attorneys offer free consultations to allow potential clients to get their questions answered. If you won’t have to pay for your first meeting, you have a perfect opportunity to learn more and to refer applicants that did not make the cut.
What to Prepare for a Consultation
When I meet with a new client, I spend the first hour of our meeting trying to understand what the new client’s needs are. I then have the new client share with me the documents that they think are relevant to their matter. I often find that new clients have not given much thought to the documents that I will want to review.
Spend some time considering those documents in advance of your meeting with your business lawyer. For example, if you are trying to decide whether you need an employee handbook, you will want to share with us a copy of any existing employee policy documents. We will review those documents and determine if they may be enough to create an employee handbook or if you need a custom employee handbook for your business. I find that it is best if we can review existing documents prior to our meeting so that we can use our time together most efficiently.
Be prepared to share in particular the following documents and information at our initial meeting: I then like to spend some time hearing more about the organization. If you have a written description of your business, that would be helpful to have. I would like to see the current organizational charts as well as the current job descriptions for key employees. I will ask you about future hiring plans so that I can anticipate how many new position descriptions may need to be created.
Lastly, it is good to spend some time thinking in advance about the questions that you have for me. This way we can use our time together most efficiently.
Staying Up-to-Date with Labor Laws
With frequent changes in employment laws, employers face an uphill battle to remain legally compliant. There are both state and federal laws that may affect your business. The Department of Labor releases new and updated rules regularly and the Equal Employment Opportunity Commission undergoes frequent changes. Keeping track of new cases, rules, and regulations can be a real hassle for any employer . An employer contract lawyer can assist you in maintaining legal employment compliance. Your lawyer stays up-to-date on changes in employment laws, so your company is protected. A qualified attorney will advise you of issues such as salary minimums, overtime classification, employment relationships, wages, hours, compensation, and benefits. Your lawyer can also help you if there is a workplace accident or if you need to terminate someone.