Employment Agreements

Employment Agreements

Nevada is an at will employment state. This means an employer may terminate the employment of an employee for any reason or no reason if that reason is not illegal. The exceptions to this rule are where there is an employment contract with definite and enforceable terms, where discriminatory animus motivates an adverse employment action, or where the termination is against public policy (such as termination in retaliation for engaging in a protected activity). Most employees in the State of Nevada do not have a written employment contract unless they are executives or professionals.

It is important for professionals and businesses alike to be aware that wrongful termination of an employment agreement can have significant reputational harm that may significantly affect future employment. Contract damages are not limited to unpaid past wages but can also include consequential damages where the ability to obtain comparable replacement employment has been diminished because of the wrongful termination. In some cases, wrongful termination can trigger reporting obligations, affect licensing rights, and prevent executives and professionals from getting replacement employment in their chosen careers.

Other factors that may affect wrongful termination of an employment contract include NRS 608 claims for unpaid wages. NRS 608.020 requires employers to immediately pay employees all wages due and owing upon termination. NRS 608.040 allows an employee to recover pay for unpaid wages with a penalty of up to 30 days additional pay where the employer does not pay the employee all sums due and owing within the statutory time-period. NRS 608.140 allows an employee to recover reasonable attorney fees for unpaid wages where a demand was previously made at least 5 days prior to the filing of a lawsuit and the amount recovered is greater than the amount of the demand. These statutory bases of recovery can have a significant impact on the ultimate outcome of an action for wrongful termination of an employment contract.

We are experienced advocates when it comes to enforcing employment agreements on behalf of executives and professionals. We are also experienced in representing employers when it comes to drafting their employment contracts. We understand the nuances of employment agreements, their typical terms, and the way contracts are interpreted by the courts. We advise Nevada businesses, executives, and professionals on employment agreements, develop and articulate the specific nuances that control relationships, and where applicable draft agreements that provide clarity and protection to all parties involved.