EMPLOYMENT AND NON-COMPETE AGREEMENTS ARE EVERYTHING.

AuthorMarcellino, Matthew
Position2018 LAW JOURNAL

For most business owners, your workforce is one of your largest assets and one of the most significant areas of potential liability. In the same way that you wouldn't start doing business with a new vendor or customer without a written contract defining the relationship, you should approach all new employee relationships with care and diligence. By setting up a written understanding of the terms of your relationship, you can start the relationship with clarity and transparency about your expectations for the employee and provide crucial evidence about the relationship if it sours. The reputation of your business is directly related to the employees you hire. Things don't always work out, but efficiently negotiating these relationships on the front end can prevent a lot of headaches on the back end.

An employment contract can include basic terms of the employment: itemization of salary/wages, hours of operation, type of employment (whether part-time, full time, term, or seasonal), general responsibilities and duties, communications, benefits, etc. The terms of the contract can be amended, with consideration (typically pay raises) from time to time throughout the employment as the role changes or the employee progresses. All too often employers avoid entering into formal employment contracts because they are concerned it will void the employee's status as at-will, or that it will be used against them if the relationship doesn't work out. In North Carolina, employees are "at-will" unless their contract explicitly provides a defined term (time period) of employment and states that the employee can only be terminated for cause. At-will employees can (and often should) have employment contracts. The contract should clearly state that the employment is at-will. A written contract clearly defines the job, responsibilities, benefits and--if done correctly-prevents confusion and promotes efficiency.

The Restrictive Covenants You Should Know.

It is likely that the most important provisions to be included in an employment contract address confidentiality, non-solicitation, non-interference, and non- competition. These provisions are often referred to as restrictive covenants. These provisions are integral to protect the company's assets and reputation but can create legal landmines. Even capitalism has its boundaries. The North Carolina Supreme Court has explained that contracts (particularly employment contracts) should not be used to unfairly...

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