Hiring? 9 Employment Contract Considerations



7.  Alternative Dispute Resolution (ADR)

ADR, generally arbitration, is a method by which the parties can waive their rights to have employment disputes settled in a judicial arena. ADR is usually cheaper and quicker for dispute resolution. Beware, however: many states do not enforce ADR provisions unless they meet certain procedural requirements.

8.  Choice of law provision

In general, the parties should decide which law should govern disputes under the agreement. Of course, there must be a reasonable connection between the employment and the state whose law is chosen.

9.  The integration clause

Integration clauses confirm the extent of the parties' agreement. That is, where there have been protracted negotiations, numerous drafts, or oral representations, an integration clause specifies which agreements or promises are intended to constitute the final agreement.

Generally, employment contracts indicate that the contract "supersedes all prior agreements, written or oral," "sets forth the entire agreement," and "may not be modified, renewed, or extended orally." If prior contracts are intended to survive, the integration clause should expressly say so.

There are many factors to consider when determining whether and how to draft an employment contract. As always, seeking the advice of legal counsel will ensure that your company does not fall into any legal traps.

Related articles: 

Hiring Better Fitting Employees

Adding a New Employee Worth the Expense?

Employees Are Your Most Valuable Assets

Firing Without Getting Burned



About the author

Emma Luevano

Emma Luevano is a regular contributor to LatinBusinessToday.com on legal issues relevant to small and medium business. She is a partner at the law firm Mitchell Silberberg & Knupp LLP (www.msk.com) who advises and represents management on labor and employment matters, including sexual harassment and other forms of discrimination, public policy violations, wrongful termination, class action wage and hour issues,and retaliation.