Proactive Negotiation of "For Cause" Employment

Proactive Protections Against At Will Employment

  • Company policies of "at will" can be overcome by private agreements
  • Read the existing policy: it may require a specific officer to sign an agreement requiring "cause" to terminate
  • Employers now write their "at will" policies as contracts that can only be modified in writing
  • Few employees give "at will" agreements much thought during the pre-hire process. Employers have given it much thought.
  • An agreement to perform services for a specific duration automatically requires legal cause to terminate

When Do You Have Bargaining Leverage to Require Cause to Terminate?

  • Your chances of negotiating a "for cause" contract are best before you are hired.
    • You will need to identify the company officer authorized to negotiate such an agreement.
    • Human Resource employees generally are not authorized, and merely repeat "company policy"
    • Usually, the C.E.O., one of the Executive Vice Presidents have this authority
  • Who is the most likely to be granted an "exception" to the at-will policy?
    • Highly skilled, "in demand" employees
    • Persons being solicited to leave current, stable employments with reputable companies
    • Executives being solicited by "start-up" companies to add to the credibility and power of the management
  • Submit a proposed simple form agreement or clause for consideration during the negotiations listing "good cause" reasons.
    • Keep the Agreement simple, and do not attempt to guarantee life-time employment.
    • A reasonable goal is one year requiring "cause", mitigating the risk of "making the big jump" to new employment.
  • Your greatest obstacle will be that "We've never done this before, not even for the CEO".
    • Ask why? Quite likely, no one bothered to raise the question.
    • Keep focused on why this makes sense to the Company, and emphasize that they can still fire "for cause".

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