Tags: employment agreement, employment law, executive agreement, scott connolly
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In employment and labor attorney Scott Connolly‘s new article “Firing Executives for Cause: Recent Case Offers Lessons“, Scott discusses how the outcome of Eric Balles v. Babcock Power, Inc. offers contract drafting lessons for corporate and employment attorneys who represent executives and companies. Much can turn on whether an executive is fired “for Cause”. If Cause exists, an executive’s employment contract almost always provides that the executive shall receive no severance benefits – typically post-termination salary and health continuation and, less commonly, accelerated vesting of stock. In addition, stock agreements may provide that, when Cause exists, an executive’s stock is subject to repurchase by the Company at a minimal price.
Because the stakes are so high, employment lawyers tend to fight the hardest during contract negotiations on termination and severance provisions and the definitions of Cause and “Good Reason” (the corollary that allows executives to leave, but still receive severance benefits).
To continue reading about firing executives for Cause, read the full article.
Tags: employer interests, employment agreement, noncompete, Noncompetition agreements
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On Tuesday, April 23rd MBBP is hosting a complimentary breakfast program titled “Noncompetition Agreements: Protecting Customer Relationships & Confidential Information“. Employers often ask: “Are our non-compete agreements with employees enforceable?” The answer often depends on whether the employer took the necessary steps to put an effective agreement in place. Courts in Massachusetts generally will enforce reasonable agreements when necessary to protect particular employer interests, such as customer relationships and trade, from misappropriation. On the other hand, courts generally do not enforce non-compete (or non-solicit and non-disclosure agreements) when no real protectable interests are at stake, the restrictions are unreasonable, or the employer has undermined its ability to enforce them.
This Program will identify the steps employers can take to increase the likelihood that a court will enforce its restrictive agreements with employees, provide education and insight into how such agreements are enforced by employers, and de-mystify the litigation process. We will also review recent legal developments that may affect whether the agreements you currently have in place with employees are vulnerable to attack by departing employees.
Our presenters have decades of experience advising employers and litigating cases in this area and we expect that attendees will bring a wealth of knowledge and experience to the program. Through discussion, we expect a very enlightening exchange of practical ideas and a range of employer experiences.
Please visit our event page for more information or to register.