Renegotiating Employment Contracts Due to COVID-19

The impact of the novel coronavirus will continue to have broad negative impacts on our commerce.  Declining business revenues and lay-offs will be commonplace.  This “new normal” will have wide-spread implications for employees, including those with employment contracts. 

Many employment contracts include compensation provisions tied to revenues, profits, or growth. Employers or Boards may attempt to utilize these provisions to the detriment of the executive or employee, despite the fact that the provisions were agreed upon in the absence of any contemplation of something like a global pandemic.

Employment contracts frequently contain non-compete provisions as well.  These provisions are usually operable regardless of the reason for termination.  As a result, an employee who is “let go” due to the impacts of COVID-19 on revenues may also be hamstrung in his/her efforts to obtain comparable employment. 

If you are currently, or fear you may soon be in a situation where your employment contract is implicated, you should consult with legal counsel.  It is not best that you “go it alone” when you are renegotiating the terms of an employment contract or agreement.  The same is true when it comes to non-compete agreements.  The attorneys at Cosgrove Law Group, LLC are experienced in such matters and we are eager to help you promptly and efficiently.