Employee Contracts
TABHR
18 Posts
If a part time hourly employee goes out on maternity and then comes back as a salaried part time employee with an increase in pay and we would like the employee to sign a contract with the new terms (salary, non-compete, etc), is this appropriate?
Can the employee refuse to sign the contract as he/she is not a new employee? What options does the employer have?
Any advice would be appreciated.
Comments
Generally you can terminate if the employee refuses to sign regardless of whether they are new or not...Now that may or may not be the best business decisions. Employers generally control the relationship, with the caveat that they must follow federal and state employment laws. BUT I would consider the following first:
(1) Was the leave protected under federal FMLA, any state FMLA or any state pregnancy leave protections? I would be concerned if the change from hourly-> salaried overall meant a drop in pay.
(2) Generally part time hourly employees do not sign contracts. Because that implies some dissolution of "at will" laws that most employers don't want to tackle. There are such thing as compensation agreements, but you want to make sure that you haven't created a legal contract, unless that is truly what you want to do.
(3) That said, it might depend on state laws, especially the non-compete part of the agreement. Also in some states, the employee has to gain something to make the NCA valid....your pay increase might be enough consideration or it might not.
(4) Also did you change other employees in the same position the same way who were not out on protected leave or maternity leave? Are you requiring them to sign a new document also? Because if she is the only one affected, she could claim that you are discriminating due to her pregnancy/leave. Now that may not be true, but do you want to have to prove it to the EEOC or other related groups?
(5) What about the new document is she not liking? Does she just truly not want the promotion/increase? Why does the employer need her status to change? I would try to understand that more before forcing the issue.
(6) If it is truly a contract that your legal counsel has drafted, I would go back and ask them after you think through the above questions. Because anytime you get into contract issues, the answer can depend on the slightest of details.