Employment Agreements: When Your Star Employee Becomes Toxic

Sometimes, a company’s star employee (or CEO or Head Coach) can be an inspirational force within an organization. Those key employees can drive a company’s sales performance to new heights and increase profitability. The company may want to reward those star employees with expensive long term contracts. That is all fine and well as long as the company goes into those negotiations with open eyes.

What if your star employee (or CEO or Head Coach) is revealed to have written emails or social media posts that by any rational definition are racist or misogynist? What if that star employee’s personal conduct is so far beyond any rational boundary of decency that the company has no realistic choice but to terminate the employee? Hopefully, the company has received good legal advice at the time the employment agreement was negotiated, and there is a morality clause in the agreement.

Most employment agreements address the circumstances in which the agreement may be terminated by the employer. Those provisions are usually negotiated with specificity if the parties to the agreement are experienced businesspeople. However, it is a surprise how many times an employment agreement comes across my desk where there is no morality clause. This may mean that an employer has to buy out the remaining payments on the contract while the former employee sits at home and collects his or her money. Clearly, less than an ideal outcome.

What is a morality clause? Simply put, a morality clause is language in an employment agreement which allows the employer to terminate the agreement if the employee engages in conduct which the company has defined to be morally objectionable. Often, this provision contains some specific examples of conduct (i.e. indictment of a crime of financial dishonesty, lewd acts, etc.).

In a previous post (which is the #1 most read post on this blog) I wrote about this topic in depth. Click here to read the original post. As an employer, you will be glad you did. For more details, email me.

Friday Night Lights and the First Amendment

In this podcast episode, Attorney Tuk discusses the how sporting events at public schools provide the potential for free speech issues to play out right in your own home town. What rights do public school students have on public school grounds? Listen to this episode to find out.

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Copyright Law Update: Texas A&M Shielded from Copyright Infringement Claim

As we enter September, college football is in the air, along with all the traditions that we have come to know over the past decades. One of the most famous of those traditions - “the 12th Man” concept - belongs to Texas A&M football. This may come as a surprise to the fans of the Seattle Seahawks, but that is neither here nor there. 

It is this piece of college football lore that is the center of a recent U.S. Court of Appeals for the Fifth Circuit (“Fifth Circuit”) decision in Canada Hockey LLC d/b/a Epic Sports v. Team A&M University Athletic Department, et al; (5th Cir. 2021; Docket No. 20-20503).

Read more FREE here at Tuk’s Copyright Law Reporter.

What You Should Know About the Britney Spears Conservatorship Battle

There was an absolutely astonishing article published last week in the New Yorker written by Ronan Farrow and Jia Tolentino which details allegations surrounding the court-imposed conservatorship over the legal affairs of singer Britney Spears. Click here to read the entire article. The abuses alleged - if true - are absolutely shocking.

If you are wondering how a court can effectively strip an adult of their legal capacity to conduct their own business, you are not alone. Many people are unaware that each state has a mechanism by which a court can impose such an arrangement after a petition has been filed in court, followed by a streamlined litigation process. In Pennsylvania, this mechanism is called Guardianship. A guardianship, if granted, essentially strips an adult of the ability to make decisions over their own financial, business and health matters.

Fortunately, the rules of court that govern Guardianship litigation (known as the Orphans Court rules) are fairly robust and designed to prevent abuse of the system. However, a Guardianship matter is an extremely serious one and if you are involved in such a matter either as a Petitioner or an Alleged Incapacitated Person, you should seek legal advice immediately.