August 8, 2008

One Size Does not Fit All: Employee Handbooks May Lead to Employer Liability without Careful Review

In Peters v. Gilead Securities Inc., the 7th Circuit sent out a warning to employers using employee handbooks, that their provisions may be held legally binding due to the contract liability theory of promissory estoppel. Specifically, the court ruled that although a company may not be subject to the Family Medical Leave Act they may still be liable if their Employee Handbook states employees are eligible for such a leave.

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June 27, 2008

Change in Executive’s Reporting Relationship Considered a Breach of Contract by Employer

Many executive employment agreements provide that an executive can only be terminated “for cause.” In addition, those agreements sometimes provide that the executive can terminate the employment relationship for “good reason.” A resignation for “good reason” results in it being treated as a termination without cause by the employer. This is significant, because the employee will then be entitled to damages, i.e., whatever the employee would have received under the agreement had he or she either remained employed or terminated without cause.

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