As a business owner and employer, few things are more critical than ensuring operations run smoothly. A crucial part is having purposeful, legally sound employment contracts and agreements that cover all your bases. Technology General Counsel has extensive experience helping employers craft comprehensive employment agreements and assisting employers in dealing with various legal issues when they arise. Contact a skilled New York employment lawyer for assistance today.
Employment Lawyer | Here to Protect Your Business
Here at Technology General Counsel, we take pride in our ability to represent business owners and help them truly thrive effectively. Whether you need a competent New York business and technology lawyer to draft up a contract, handle negotiations, or otherwise advocate for your best interests, you can have peace of mind when turning to Technology General Counsel.
Employment Agreements: The Foundation of Your Workforce
A team of dedicated employees is at the core of every thriving business, and a comprehensive employment agreement is at the heart of every strong employee-employer relationship.
- Standard Employment Contracts: These are the most common type of agreements. They outline the basic terms of employment, such as position, duties, compensation, benefits, and termination conditions. They provide a clear structure for the employment relationship and help prevent misunderstandings.
- Executive Employment Agreements: Tailored for high-level positions, these contracts encompass more complex terms, including larger compensation packages, bonuses, stock options, severance terms, and specific duties and expectations. They often include clauses related to confidentiality and non-compete agreements to protect the business.
- Independent Contractor Agreements: For businesses that hire freelancers or consultants, these agreements specify the scope of work, duration, and payment terms and clarify the contractor’s non-employee status. They are vital for delineating the contractor’s independence from the company, impacting tax obligations and liability issues.
- Temporary or Fixed-Term Contracts: Used for hiring employees for a specific period or project, these agreements define the timeframe of employment, specific project goals, and end conditions. They are essential for not permanent roles but crucial for short-term needs.
- Non-Disclosure Agreements (NDAs): While often part of broader employment contracts, NDAs can be standalone agreements that protect confidential and proprietary information. They are critical for businesses that rely on unique technologies, processes, or data.
- Non-Compete Agreements: These agreements restrict an employee’s ability to compete with the employer during or after employment within particular geographic regions and time frames. They help protect the business’s competitive edge but must be reasonable in scope to be enforceable.
- Non-Solicitation Agreements: Aimed at preventing former employees from soliciting the company’s clients or employees, these are crucial for businesses looking to protect their workforce and customer base.
Each agreement serves a specific purpose and requires careful consideration and drafting to ensure they are legally binding and reflect the business’s needs.
Equity Agreements
Equity agreements represent a pivotal strategy for businesses, especially startups and growth-stage companies, to attract, motivate, and retain key talent. By offering a stake in the company’s future success, these agreements align employees’ interests with the business’s goals, fostering a culture of ownership and commitment.
- Stock Options: One of the most common forms of equity compensation, stock options give employees the right to purchase company stock at a predetermined price, known as the exercise or strike price, after a certain vesting period. This arrangement allows employees to benefit from the company’s growth and increased stock value over time.
- Vesting Schedule: Typically, stock options come with a vesting schedule that outlines how and when the options become exercisable. This encourages employees to remain with the company long-term to benefit from their equity fully.
- Exercise Period: After vesting, employees have a specific period within which they can purchase (or “exercise”) their options at the strike price.
- Restricted Stock Units (RSUs): RSUs are company shares given to employees as compensation but come with restrictions and vesting criteria. Unlike stock options, RSUs give employees the right to receive shares directly, without needing to purchase them, once the vesting requirements are met.
- Vesting Conditions: The vesting of RSUs can be tied to time spent at the company or specific performance milestones, providing a clear incentive for employees to achieve targets or remain with the company for a certain period.
- Phantom Stock: Phantom stock is a bonus plan that grants employees the benefits of stock ownership without actually giving them any company stock. Instead, employees receive a cash payout, typically based on the value appreciation of a certain number of shares, at a future date or upon reaching a specific goal.
- Stock Appreciation Rights (SARs): SARs provide employees with a bonus equal to the increase in value of a set number of shares over a set period. Like phantom stock, SARs can be settled in cash or shares, depending on the agreement, and offer employees a direct incentive tied to the company’s performance without diluting ownership.
Crafting Effective Equity Agreements
Creating an effective equity agreement requires a deep understanding of not only these instruments but also how they fit within the broader legal and financial framework of your business. A seasoned employment lawyer can help you navigate the following considerations:
- Legal Compliance: Ensuring equity agreements comply with federal and state securities laws, including disclosure requirements and exemptions.
- Valuation: Regularly assessing the fair market value of the company’s stock, especially for private companies, to set appropriate exercise prices for options and to evaluate the worth of RSUs and SARs.
- Tax Implications: Understanding the tax consequences for both the employer and the employee, including the timing of taxation and the type of taxes applicable (e.g., capital gains vs. ordinary income tax).
Restrictive Covenants
Restrictive covenants, including non-compete, non-solicitation, and confidentiality agreements, protect your business’s proprietary information, client relationships, and competitive edge. These provisions must be carefully crafted to be enforceable and fair, balancing the protection of your business interests with your employees’ rights.
With three decades of experience, Technology General Counsel is adept at drafting and reviewing restrictive covenants that comply with New York law and are tailored to your business’s needs. We ensure these agreements are precise, enforceable, and designed to provide maximum protection without overreaching, minimizing the risk of disputes and litigation.
Termination of Employees
Terminating an employee is a complex process that requires careful consideration of legal, ethical, and business factors. Whether the termination is due to performance issues, restructuring, or other reasons, handling the process with sensitivity and adherence to legal requirements is imperative to avoid potential disputes and litigation.
Our extensive experience in employment law enables us to guide you through the termination process, ensuring that you comply with all legal obligations, including notice requirements and severance agreements, and protecting your business’s interests. We help you through this challenging process with professionalism and respect for all parties involved, minimizing the risk of legal complications and safeguarding your business’s reputation.
Contact a Skilled Employment Lawyer Today
Don’t face an employment-related issue without a competent attorney. Contact a New York employment lawyer from Technology General Counsel who can effectively represent your business’s interests.
