Hiring employees for your business can be an exciting indicator of growth within your company. Determining the conditions of their employment through an employment contract is important. Employment contracts in Louisiana can range anywhere from an oral indication you have the job to a written legal contract.
Louisiana Oral Contracts
An oral contract is a verbal agreement. You may offer an applicant a job in an interview, which could be considered an oral contract once that individual verbally indicates they accept. An oral contract is just as legally enforceable as a written one, but it may be harder to enforce, as the terms are not written down anywhere.
Louisiana Written Contracts
A written employment contract is a document that outlines the terms and conditions of an individual’s employment within your company. Written employment contracts are extremely common for high-level executives. These contracts usually include a set period executives are required to stay at the current company. Written employment contracts can also include grounds for termination.
Louisiana At-Will Contracts
The most common employment contract in the U.S. is the at-will employment contract. This contract states an employee can quit any time for any reason and they can be fired at any time for any reason as long as that reason is legal. If you choose to hire employees with at-will employment contracts, it is important to remember to adhere to the terms outlined in the contract. For example, you hire an employee whose contract states they are entitled to a specific amount of commission for the year. After six months, you fire this employee and only pay them half of the commission detailed in their contract. That employee could sue your company for breach of contract.
Get Help Drafting Employment Contracts in Louisiana
At Lowe, Stein, Hoffman, Allweiss & Hauver L.L.P., we have a legal team backed by decades of legal experience in the labor and employment practice areas. Whether you are starting a new business and are hiring employees for the first time, or you simply desire an update to your old employment contracts, our New Orleans corporate litigation lawyer can help you.
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