Employment Agreements

There is a significant presence of small businesses in Florida, with millions currently operating in the state. As these businesses operate and expand, they encounter the challenge of complying with Florida employment law while managing their workforce. One option is to use an employment agreement for business.

An employment agreement is a written document that establishes clear expectations between employers and employees. It outlines the terms and conditions that govern the employment relationship, including whether the employee is employed “at will” or under specific contractual terms. These agreements play a vital role in promoting understanding and accountability between both parties.

You may also want an agreement for individuals who work with your business on a contract basis that are not employees, these are usually referred to as independent contractors and a strong agreement will provide clarity and control over the business relationship with them.

It is essential to have well-drafted contracts tailored to each business and its employees’ unique needs. This ensures that the agreements accurately reflect the roles, responsibilities, and obligations of all parties involved. These documents must be tailored to your business and individual employees and their responsibilities.

Do you need employment agreements?

Employment contracts are not mandatory for all employees in Florida businesses. Typically, the employment relationship in Florida is considered “at will,” allowing either the employer or the employee to terminate the relationship at any time and for any legal reason. This flexibility is preferred by many employers. However, there are specific scenarios where employment contracts can be beneficial:

Specific Time Period

• If an employer hires an employee for a predetermined period or project, both parties can establish a clear working relationship by signing an employment contract. This ensures realistic expectations regarding the employee’s duration. Such contracts are commonly used for special projects.

Limited Termination for Cause

• Employers may choose to offer a certain level of job security to their employees by drafting an employment contract that restricts termination to situations involving “cause.” These agreements should be carefully crafted by legal professionals, as they limit the at-will nature of the relationship. This type of contract is typically used for executives.

Risk of Discrimination

• When using employment contracts for a specific group of employees, businesses should exercise caution to avoid any perception of discrimination. Treating some employees differently by offering contracts while others remain at-will could be seen as discriminatory. If employment contracts are used for a particular employee group, all employees within that group should be treated equally.

Terms to Include in Employment Agreements

Florida law permits a wide range of terms to be included in employment contracts. However, it is not necessary to include all possible terms. Once a term is incorporated into the contract, it becomes more challenging to modify or change it in the future. Since business needs may evolve over time, excluding certain terms from the contract may be prudent, allowing for more flexibility in making future changes. Here are some common terms that can be included in employment contracts:

• Salary and wages
• Bonus eligibility
• Full-time or part-time status
• Exempt or non-exempt status
• Benefits
• Severance pay upon employment separation
• Standards of conduct

Drafting and Litigating Employment Agreements

The drafting of employment agreements that suit your business needs requires an attorney who is experienced in business drafting and has a strong financial background. At TCLG, we possess the necessary experience in drafting employment agreements and can help protect against common pitfalls. TCLG has also litigated many cases for Breach of Employment Agreement, so we have seen first hand the issues that arise from employment agreements.

If you are seeking guidance on how our firm can assist you in your employment agreement needs, or if you believe a current or former employee has breached their employment agreement, please reach out to us for further information.