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Proactive Negotiation of "For Cause" Employment

Proactive Protections Against At Will Employment

  • Company policies of "at will" can be overcome by private agreements
  • Read the existing policy: it may require a specific officer to sign an agreement requiring "cause" to terminate
  • Employers now write their "at will" policies as contracts that can only be modified in writing
  • Few employees give "at will" agreements much thought during the pre-hire process. Employers have given it much thought.
  • An agreement to perform services for a specific duration automatically requires legal cause to terminate

When Do You Have Bargaining Leverage to Require Cause to Terminate?

  • Your chances of negotiating a "for cause" contract are best before you are hired.
    • You will need to identify the company officer authorized to negotiate such an agreement.
    • Human Resource employees generally are not authorized, and merely repeat "company policy"
    • Usually, the C.E.O., one of the Executive Vice Presidents have this authority
  • Who is the most likely to be granted an "exception" to the at-will policy?
    • Highly skilled, "in demand" employees
    • Persons being solicited to leave current, stable employments with reputable companies
    • Executives being solicited by "start-up" companies to add to the credibility and power of the management
  • Submit a proposed simple form agreement or clause for consideration during the negotiations listing "good cause" reasons.
    • Keep the Agreement simple, and do not attempt to guarantee life-time employment.
    • A reasonable goal is one year requiring "cause", mitigating the risk of "making the big jump" to new employment.
  • Your greatest obstacle will be that "We've never done this before, not even for the CEO".
    • Ask why? Quite likely, no one bothered to raise the question.
    • Keep focused on why this makes sense to the Company, and emphasize that they can still fire "for cause".

Employee Rights Attorney Frank Pray

5160 Campus Drive

Newport Beach CA 92660

949.251.1006

877.job.atty


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