Should You Use At-Will Employment?

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An employment agreement is typically at-will. That means employees or the employer may terminate their working relationship at any time – and for any (legal) reason. Even if the employee did nothing wrong, the employer can terminate their contract as long as they have proper reason for the termination.

Can You Change At-Will Employment Status?
In the United States, all work is at-will employment unless otherwise specified. If the employee and employer agree to a specific work contract, then the at-will status can be changed.

Benefits of At-Will

At-will employment benefits both parties. An employee can leave the company at any time, without having to fulfill a specific time period. Employers can let their staff go if they have staff changes that need to be made, without being forced to pay a severance pay or face a breach of contract. With at-will, the employer does not have to provide the employee with any reason for their termination, which gives employers broad discretion as to how employees are handled.

Exceptions to At-Will Employment

There are exceptions to the at-will rules. Plus, every state has their own separate exclusions to the rule. Therefore, employers should consult with their employment lawyer in San Antonio before assuming they can terminate an employee. Some exceptions to the at-will employment rule include:

• A termination that violates Federal discrimination laws – such as terminating an employee because of their gender, age, handicap status, pregnancy, race, religion, etc.
• A termination that violates a state employment or public policy.
• A termination after a contract was created to change the status away from at-will employment.
• A termination after a Good Faith and Fair Dealing arrangement was made.

Consult an Employment Lawyer

Sometimes you do not need a written agreement for an employee’s status to no longer be at-will. If there is any implication that the employee is no longer at-will, terminating them could result in severe legal consequences. Therefore, you should consult with your employment lawyer San Antonio before terminating your employees. To better protect yourself, your attorney may have you create employment contracts with your staff.

Tips for Avoiding Wage and Hourly Disputes with Employees

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Employees may feel they are not getting competitive pay, but when your company is blatantly violating wage and hourly requirements, you could find yourself in hot water. There are federal and state requirements for how much employees should be compensated and if you are not in compliance, you could face lawsuits, fines or worse.

Conduct a Compensation Review

Meet with an employment lawyer in San Antonio to conduct a compensation review. You will need to review your hourly and annual salary rates and determine if you comply with employment laws. While you may have to pay for a formal review, these costs are nominal compared to how much you could pay in a lawsuit or if you are fined for non-compliance.

Train Management Effectively

Managers should understand all compensation requirements. They should know how to spot hourly compensation issues – such as employees not being paid adequate overtime or travel pay – and bring them to your attention as soon as they are discovered.

Understand the Exempt and Non-Exempt Classification

When you assign someone an annual salary that does not mean they don’t deserve overtime. If you are going to classify an employee as “exempt” understand that classification. Exempt employees are not entitled to overtime, while non-exempt employees are.

Take Compensation Complaints Seriously

If a compensation complaint is brought to your attention, do not sit on that complaint. Investigate it right away and treat it as serious as any other complaint against your business. Wage and hourly compensation lawsuits are costly and could cost more than just compensating the employee properly in the first place.

Develop Strong Policies for Compensation

Employees should work the hours they are required and should never be allowed to work without documenting their hours. The number of hours an employee works should be properly documented and the information stored in case there is ever a dispute about compensation.

It is best to consult with an employment lawyer in San Antonio any time you need to adjust or you are dealing with a compensation complaint. Employment laws are very precise; therefore, any time there is an assumption you are violating those laws, you must act fast. An attorney can help you comply with employment laws, ensure you’re offering competitive compensation, and assist you if a complaint does arise.