Could Your Employee Contracts Break the Law?

As an employer, you must ensure that your employee contracts are legally compliant. While it may seem like a daunting task, it is essential to ensure that your contracts are fair, clear and legally enforceable. The best way to ensure this is to partner with a seasoned Georgia Employment Law Contracts Lawyer from M. Qader A. Baig & Associates, LLC, near Atlanta.

Let’s review the potential legal issues that may arise from poorly drafted employee contracts and how to avoid them.

Failing to Meet Minimum Wage Requirements

One of the most common issues that arise with employee contracts is failing to meet the minimum wage requirement, especially with employees who work for tips. As an employer, you must ensure that your employees are paid at least the minimum wage set by the state or federal government. If your contract pays your employees less than the minimum wage, it may be deemed unlawful, and you could face legal action.

Misclassifying Employees

Another common issue with employee contracts is misclassifying employees. Misclassification can occur when an employee is classified as an independent contractor, which means they are not entitled to certain benefits and protections such as overtime pay, Workers’ Compensation benefits and unemployment insurance.

Restrictive Covenants

Employers often include restrictive covenants in their employee contracts, such as non-compete agreements, non-solicitation agreements and confidentiality clauses. While these clauses can protect business interests, they can also be deemed unlawful if they are too restrictive. More and more, they are being looked upon with disfavor in Georgia and other neighboring states.

Discrimination

Discrimination is another issue that can arise with employee contracts. If your employee contracts discriminate against employees based on their race, gender, religion, age or other protected characteristics, you could face legal action. More recent changes in the law reflect other protected classifications, so you need to review your employment contracts to ensure you are in compliance.

Failure to Follow State and Federal Laws

Finally, failing to follow state and federal laws can also result in legal action against you. Your employee contracts should comply with state and federal laws, including labor, anti-discrimination and wage and hour laws. Some local jurisdictions may also have applicable wage and hour laws or other guidelines you must follow. A local Employment Law Attorney can help.

Schedule a Review with a Georgia Employment Law Contracts Lawyer

Your employee contracts are essential documents that outline the terms and conditions of employment. However, poorly drafted contracts can result in legal action against you. To avoid such issues, you should ensure that your contracts are legally compliant, clear and fair.

If you are unsure about the legal requirements for your employee contracts, you should consult with a Georgia Employment Law Contracts Lawyer from M. Qader A. Baig & Associates, LLC, in Conyers. We can review your current contracts, identify potential risks and then create new contracts to protect your business.