Florida is an “at-will” employment state. This means that there is no employee contract, and either you or your employee can terminate employment at any time for any reason that doesn’t violate the law. There doesn’t even have to be a particular reason other than either of you don’t want to continue the working relationship.
However, there’s an alternative option. You can agree to an employment contract with your employee. If you decide to have a contract, you and the employee are bound by its terms. Be sure to include these terms in your employee contracts.
Position Details
The contract needs to have all of the relevant details of the position. This includes the employee’s compensation, when the employment begins and ends, and any benefits included.
Outline how and when the employee will receive payment. This could be a time-based schedule or triggered by the complement of project-related milestones. If the employee could receive a bonus or commission, this should also be outlined.
This section should include all of the basics about the employment and what’s expected of the employee.
Trade Secrets
Do you operate a business that has confidential information? Then you’ll want to protect this information. Include confidentiality terms in your employment contract. This includes company processes, trade secrets, data, or anything else that is unique to your business.
Including this clause prevent your employee from sharing this sensitive information with anyone. You can write the agreement so that the employee must continue to protect your company’s secrets even after the employment contract ends.
Termination Terms
Because you’re signing a contract with the employee, you can no longer fire the employee at-will. The employment contract will run until the end date that’s listed in the contract. If you find that the relationship isn’t working out, you need termination terms built into the contract.
Include language that outlines how either party can terminate the contract early. Typically, this includes a notice requirement. You can also agree to immediate contract termination should either party violate the contract. Some employers also include terminology around automatic contract termination should either party no longer have the ability to fulfill their side of the contract.
Prevent Competition
The last thing you want is for your employee to complete their contract and then immediately go to work for a competitor or start their own business as your competition. Writing this term can be tricky, but with a skilled attorney’s assistance, you can create a non-compete clause that abides by Florida law.
You want to protect your business, but your demands cannot be unreasonable. You can’t prevent your employee from obtaining gainful employment in their skill area.
Work Product Ownership
Who owns the rights to the work product that the contracted employee produces? Claim ownership of the work product by including this in the contract. You can claim ownership of the data analysis, inventions, work products, documents, and other creative efforts that your employee produces while in your employment.
Without this term, your employee can make a claim of ownership. Then they have the right to do what they will with it. You may even find yourself in a legal battle that has you paying them for the right to use their invention or other creative endeavors.
Have the Professionals Draft Your Employee Contract
It can be tempting to use a pre-printed employee contract template. However, this can be a critical mistake. These premade contracts are generic in nature. You can easily leave out essential terms or unintentionally agree to unfavorable terms.
Schedule an appointment with one of our skilled attorneys and let us help you craft thorough employment contracts.
