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  1. #1
    Join Date
    Jul 2007
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    5

    Default Early Resignation as Breach of an Employment Contract

    I am in Colorado. I have signed a 3 year employment agreement. Nowhere in the contract does it state that I am agreeing to 3 years of employment, only rather the company agrees to hire me for a term of 3 years. There are no outs for me. No buyout etc. However the company put in clauses they can terminate me, without cause, 30 days from my annual anniversary. There is no threat as to what the company will do to me if I resign prior to the term.
    In fact the only warning states they can come after me for trade secrets if I work for an equal competitor in the same market within 12 months.
    I have heard this company has never lost a lawsuit, but it seems to me that they can not sue me for open ended damages if there is nothing stated in the contract, and I was wondering about the enforceablility of a lopsided contract that gives the employer an annual out without cause, but doesn't implictly give me an out...
    However, first sentance, employer agrees to hire the undersigned for a term of 36 months...
    Not the undersigned agrees to work for the employer for 36 months...

    I am trying to save a few bucks by not going to a local attorney... does anyone care to sound off?

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
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    17,815

    Default Re: Early Resignation - Breech?

    So you expect us to be able to interpret the enforceability of a document we have not read?

    Sorry, can't be done. You're going to have to show it to an attorney in your state.

  3. #3
    Join Date
    Jul 2007
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    5

    Default Re: Early Resignation as Breach of an Employment Contract

    Thanks for the quick response but, are there not some type of blanket laws governing enforceable employment contracts. I don't need specifics, but generally speaking, are they allowed to sue for breech when they do NOT implictly state in the contract the consequences of breach?

  4. #4
    Join Date
    Mar 2005
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    Michigan
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    Default Re: Early Resignation as Breach of an Employment Contract

    You can find books and treatises addressing those "blanket laws".

    What do you believe they would sue for? Relocation expenses? Training expenses? A signing bonus?

  5. #5
    Join Date
    Jun 2006
    Location
    Massachusetts
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    Default Re: Early Resignation as Breach of an Employment Contract

    The devil is in the details. No, as I understand your question there are no "blanket laws". The EXACT wording of the contract or agreement will determine whether or not it is enforceable. We cannot interpret the enforceability of an agreement we have not read. Whether they can sue for breach will depend on the exact wording of the document. There is nothing in the law that automatically grants a document enforceable or not enforceable.

  6. #6
    Join Date
    Jul 2007
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    5

    Default Re: Early Resignation as Breach of an Employment Contract

    Quote Quoting aaron
    View Post
    You can find books and treatises addressing those "blanket laws".

    What do you believe they would sue for? Relocation expenses? Training expenses? A signing bonus?

    The rumors around the company say the total amount of salary left on your contract, so if I made 40k on a 3 year deal and I left after the 12th month, I would have to pay them 80k.

    However nowhere does the contract state those terms.

    I imagine if they can't get me for that, it would be for training, bonuses and cost to find a replacement.

  7. #7
    Join Date
    Mar 2005
    Location
    Michigan
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    28,656

    Default Re: Early Resignation as Breach of an Employment Contract

    You mean if you made $40K/year?

    The rumors, to me, sound like utter nonsense.

  8. #8
    Join Date
    Jul 2007
    Posts
    5

    Default Re: Early Resignation as Breach of an Employment Contract

    Yeah, 40k/ year.

    It sounds like nonsense to me as well, however it is interesting to speculate what possible damages they could seek since there is no monetary buy-out option in the contract.

  9. #9
    Join Date
    Jul 2007
    Posts
    5

    Default Re: Early Resignation as Breach of an Employment Contract

    I had an update from a Colorado lawyer I though would be helpful to post so others can see it.

    No one can force anyone else to work for them. That is involentary servitude. All that an future ex-employer can do is attempt to limit the time, scope, and area of future work endevours. In my case, there is no specific financial liablity for leaving my contract early, however there is the time/scope/area clause, this is standard in non-competes.

    So perhaps they say you can't be in broadcasting (scope) in Colorado (area) until one year after the termination of this contract (not the time you leave, but rather the official contract termination date).

    If you violate the terms of the time/scope/area clause, both you and your future employer could be sued for trade secret violation.

  10. #10
    Join Date
    Jul 2005
    Location
    Texas
    Posts
    254

    Default Re: Early Resignation as Breach of an Employment Contract

    Your lawyer should have also informed you that by statute in Colorado any agreement “not to compete which restricts the right of any person to receive compensation for performance of skilled or unskilled labor for any employer shall be void.” See Colo. Rev. Stat. § 8-2-113(2). However, this statute also creates four exceptions to the general rule that recognize specific situations when non-compete and non-solicit agreements may be enforced by a court.

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