Many high level executives, doctors and salespersons enter into employment agreements. Usually an employment agreement contains a “choice of law” provision. This provision conveys the parties’ agreement to apply the law of a particular state to any dispute that arises between the parties. Because state employment laws can vary significantly, the parties’ choice can affect the outcome of certain disputes.
Most of time, the parties select the law of the state where the parties are located. For example, a Texas employer and its employee will usually opt to apply Texas law. Sometimes, however, an employer headquartered in another state will insist that the other state’s law be applied, even to disputes arising from a contractual relationship between a Texas-based division and its Texas employee. A Texas employee who is asked to agree to apply another state’s law to an employment dispute should ask an attorney to review the employment agreement (and the law of the other state) to determine if the other state’s law is favorable. If not, the employee should attempt to negotiate on that point.
To ask an employment law attorney to review and analyze a proposed employment contract or for assistance in negotiating an employment agreement, please contact the employment law lawyers at Clouse Dunn Khoshbin LLP at [email protected].
