Question:
Dear Jennifer,
Am I reading my employment agreement right? If the contract is assignable, can my employer trade me like a commodity? Should I fight assignment in my employment agreement?
Thanks,
Dr. G
Answer:
Sounds like you are reading your employment agreement correctly. Most employers and their counsel will look to include an assignment provision in the employment agreement so that if they do sell assets or equity, the employees are required to transfer with a sale, including the employers rights under any restrictive covenants. During the employment negotiation process we should look to exclude assignment language from your contract. We may not be successful, but if we are, you will have much more leverage on a sale and be able to renegotiate at the time of a transaction for a new arrangement or perhaps a signing or retention bonus…
Dear Jennifer,
Am I reading my employment agreement right? If the contract is assignable, can my employer trade me like a commodity? Should I fight assignment in my employment agreement?
Thanks,
Dr. G
Answer:
Sounds like you are reading your employment agreement correctly. Most employers and their counsel will look to include an assignment provision in the employment agreement so that if they do sell assets or equity, the employees are required to transfer with a sale, including the employers rights under any restrictive covenants. During the employment negotiation process we should look to exclude assignment language from your contract. We may not be successful, but if we are, you will have much more leverage on a sale and be able to renegotiate at the time of a transaction for a new arrangement or perhaps a signing or retention bonus…
Have a question for Jennifer? Email is best. You can reach her at Jennifer@Kirschenbaumesq.com.
