Employment Agreements and Severance Agreements

The employment relationship is, ultimately, a contractual relationship between employer and employee, in which each shares rights and obligations that relate to terms and conditions of employment. An experienced employment litigator can protect these rights and interests.

NYC Employment and Severance Agreement Lawyer

An employment agreement or employment contract will involve a variety of rights and responsibilities, including detailed provisions related to separation packages, employee layoffs, confidentiality agreements, indemnification clauses, dispute resolutions and severance clauses. Conveniently located in midtown Manhattan, The Harman Firm, P.C., Attorneys and Counselors at Law, can help employees protect their rights when it comes to drafting or litigating issues related to employment agreements. Without the assistance of an experienced lawyer, the rights of employees—including executives and managers—can be put at risk.

Whether written or implied, employee contracts and severance agreements may provide terms and conditions of health benefits, vacation and sick leave, employment grievance procedures and employee behavior after termination that seriously impacts the employment relationship. Unlike the employment agreement, a severance agreement is entered by a departing employee and their employer. Typically, severance agreements will contain a number of provisions, including the release of the employer from liability in future lawsuits and certain covenants on the employee in exchange for a separation package.

Non-Compete/Non-Solicitation Agreements

Employment contracts will often contain restrictive covenants, which include non-compete provisions and/or non-solicitation clauses.

In broad terms, covenants not to compete are legally permissible in order to protect the employer from unfair competition from its former employees. The reasonableness of a non-competition covenant, non-solicitation covenant, or any other type of restrictive covenant, whether standing alone or as part of an overall employment agreement, will be judged on more than just its duration, scope, and geographic restrictions. All such clauses must be consistent with the overriding public policy that restrictive covenants should not unnecessarily restrict free trade or the ability of an employee to practice his or her particular trade, and its effect upon the general public.

In order for a non-compete agreement to be enforceable it: (1) must be necessary to protect the parties’ legitimate interests, (2) it must cause no undue hardship on the former employee, and (3) it must not impair the public interest.

As a threshold matter, an employer must establish that it has a legitimate business interest worthy of protection. In order to restrict a former employee from competing for its business, an employer must have something that it wants to keep away from its rivals that the court deems to be a bona fide business interest of such worth or importance that it deserves protection, at least for a period of time.

Such protectable interests are narrowly defined to prevent employers and employees from making agreements that unnecessarily restrict free trade. Matters that are generally known within the relative business community, or can be discovered easily through some investigation are not protectable interests. An employer may not prevent an employee from using the general skills in an industry which have been built up over the employee’s tenure with the employer. In cases where the employer's interests do not rise to the level of a proprietary interest deserving of judicial protection, a court will conclude that a restrictive agreement merely stifles competition and is therefore unenforceable

If you believe you have a non-compete agreement that is injurious to you and/or your employment, or if your employer is trying to enforce an unfair non-compete agreement, you should consult with our team of skilled lawyers to weigh your legal options.

Commission Agreements

Employees in certain fields such as sales and other commission based occupations are often subject to the terms of a contract between them and their employer. These contracts generally cover the terms of commission, and how a commission payment is derived.

The Harman Firm, P.C., Attorneys and Counselors at Law, offers aggressive and resourceful representation when it comes to negotiating, preparing and litigating employment contracts and severance agreements, especially in the New York metropolitan area’s public relations, technology, and marketing communities.

The New York Labor Law defines “wages” as “the earnings of an employee for labor or services rendered, regardless of the amount or whether the amount of earnings is determined on a time, piece, commission or other basis.” The New York Court of Appeals has held, absent an agreement or a well-established practice to the contrary, a commission is earned when an employee identifies a person “ready, willing and able” to enter into a contract for goods or services from the employer. Furthermore, pursuant to statute, an employee who prevails in his action to recover commissions earned pursuant to his employment contract is entitled to an award of reasonable attorney fees, court costs, disbursements, and double damages.

Where an employer willfully fails to pay an employee wages due and owing, the employee is entitled to recover liquidated damages in an amount equal to twenty-five percent (25%) of the unpaid wages. This reflects a strong legislative policy aimed at protecting an employee’s right to wages earned. Former employees are entitled to their commissions and liquidated damages on a claim for unpaid commissions under the Labor Law where the employer knowingly, deliberately and voluntarily disregards its obligation under the Labor Law to pay the employees’ commissions.

The Harman Firm, P.C., Attorneys and Counselors at Law, offers aggressive and resourceful representation when it comes to negotiating, preparing and litigating employment contracts and severance agreements, especially in the New York metropolitan area’s public relations, technology, and marketing communities.

The Harman Firm, P.C. serves the New York metropolitan area including Manhattan, Brooklyn, Queens, Westchester, White Plains, Nassau and Suffolk Counties.