CHOICE OF LAW IN EMPLOYMENT CONTRACT

If you have a non-compete Agreement, or any employment agreement, it likely has what we call “A choice of law provision” in it..

That means, the parties agree to be bound by the laws of a specific state. Sometimes you will find Arbitration Agreements in the contract, where parties (or just one party) waive their right to a jury trial or their right to local courts, but instead agree to have an arbitrator decide all disputes.

Do these clauses matter?

Absolutely.

I don’t like Arbitration Agreements in Health Care cases – in employment cases they offend me slightly less.

As for choice of law, why would you sign a contract agreeing to be bound by the law of a state where you have never lived, worked, etc? If your contract lists a state other than the one where you work – ask why? Answer – probably some lawyer told your employer that state had favorable laws…

But if you haven’t been there, why be bound by their laws.

Do some research – you may not want to agree to be bound by a certain state’s laws, especially if you have no contact to the state.

Lauren Ellerman

Lauren Ellerman

In 2011, Lauren Ellerman was named "Young Lawyer of the Year" by the Roanoke Bar Association for her work in the community. To speak with Lauren about your personal injury case, contact her at lellerman@frithlawfirm.com.