Can a significant change in incentives void an employment contract?Big corporation in the UK, Intellectual Property and a ContractIntellectual Property of a bankrupt companyCan prices change in the middle of a contractCan a minor legally sign an employment contract?Contract change after both parties signCan employer claim ownership of intellectual property made while not at work?Can a business unilaterally change a contract?Legality of employment contract clause - Training reimbursementAnnual Contract of employment with the same employerAssignment of Inventions in Employment Contract for Software Development
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Can a significant change in incentives void an employment contract?
Big corporation in the UK, Intellectual Property and a ContractIntellectual Property of a bankrupt companyCan prices change in the middle of a contractCan a minor legally sign an employment contract?Contract change after both parties signCan employer claim ownership of intellectual property made while not at work?Can a business unilaterally change a contract?Legality of employment contract clause - Training reimbursementAnnual Contract of employment with the same employerAssignment of Inventions in Employment Contract for Software Development
Recently over at The Workplace there was a question regarding an employee withholding valuable information that they developed in their spare time. According to their employment contract all intellectual property they develop, regardless of work hours, belongs to the company.
The company also recently slashed the incentive program that the employee has been generating a significant amount of their income from. (A quick estimate provided a $60k/year difference in income for said employee.)
Since the employee only spent their off hours developing this intellectual property for the obviously significant incentive money, is the employee entitled to any compensation or the right to retain the property?
Since I don't have the actual contract I will simply assert for the purpose of this question that the contract has no stipulations regarding this.
As I am in the United States myself, I am mostly concerned with answers from the US. However, I would be interested to hear how this would be handled elsewhere as well.
contract-law intellectual-property
asked 8 hours ago
bruglescobruglesco
1714
New contributor
bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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add a comment |
Recently over at The Workplace there was a question regarding an employee withholding valuable information that they developed in their spare time. According to their employment contract all intellectual property they develop, regardless of work hours, belongs to the company.
The company also recently slashed the incentive program that the employee has been generating a significant amount of their income from. (A quick estimate provided a $60k/year difference in income for said employee.)
Since the employee only spent their off hours developing this intellectual property for the obviously significant incentive money, is the employee entitled to any compensation or the right to retain the property?
Since I don't have the actual contract I will simply assert for the purpose of this question that the contract has no stipulations regarding this.
As I am in the United States myself, I am mostly concerned with answers from the US. However, I would be interested to hear how this would be handled elsewhere as well.
contract-law intellectual-property
asked 8 hours ago
bruglescobruglesco
1714
New contributor
bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
3
At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.
– Charles E. Grant
6 hours ago
Is it at-will employment?
– Harper
3 hours ago
@Harper For US so in most cases yes. But that wouldn't effect existent intellectual property, would it?
– bruglesco
3 hours ago
add a comment |
Recently over at The Workplace there was a question regarding an employee withholding valuable information that they developed in their spare time. According to their employment contract all intellectual property they develop, regardless of work hours, belongs to the company.
The company also recently slashed the incentive program that the employee has been generating a significant amount of their income from. (A quick estimate provided a $60k/year difference in income for said employee.)
Since the employee only spent their off hours developing this intellectual property for the obviously significant incentive money, is the employee entitled to any compensation or the right to retain the property?
Since I don't have the actual contract I will simply assert for the purpose of this question that the contract has no stipulations regarding this.
As I am in the United States myself, I am mostly concerned with answers from the US. However, I would be interested to hear how this would be handled elsewhere as well.
contract-law intellectual-property
asked 8 hours ago
bruglescobruglesco
1714
New contributor
bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Recently over at The Workplace there was a question regarding an employee withholding valuable information that they developed in their spare time. According to their employment contract all intellectual property they develop, regardless of work hours, belongs to the company.
The company also recently slashed the incentive program that the employee has been generating a significant amount of their income from. (A quick estimate provided a $60k/year difference in income for said employee.)
Since the employee only spent their off hours developing this intellectual property for the obviously significant incentive money, is the employee entitled to any compensation or the right to retain the property?
Since I don't have the actual contract I will simply assert for the purpose of this question that the contract has no stipulations regarding this.
As I am in the United States myself, I am mostly concerned with answers from the US. However, I would be interested to hear how this would be handled elsewhere as well.
contract-law intellectual-property
contract-law intellectual-property
asked 8 hours ago
bruglescobruglesco
1714
New contributor
bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 8 hours ago
bruglescobruglesco
1714
New contributor
bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 8 hours ago
bruglescobruglesco
1714
New contributor
bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 8 hours ago
bruglescobruglesco
1714
asked 8 hours ago
bruglescobruglesco
1714
1714
New contributor
bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
3
At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.
– Charles E. Grant
6 hours ago
Is it at-will employment?
– Harper
3 hours ago
@Harper For US so in most cases yes. But that wouldn't effect existent intellectual property, would it?
– bruglesco
3 hours ago
add a comment |
3
At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.
– Charles E. Grant
6 hours ago
Is it at-will employment?
– Harper
3 hours ago
@Harper For US so in most cases yes. But that wouldn't effect existent intellectual property, would it?
– bruglesco
3 hours ago
3
3
At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.
– Charles E. Grant
6 hours ago
At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.
– Charles E. Grant
6 hours ago
Is it at-will employment?
– Harper
3 hours ago
Is it at-will employment?
– Harper
3 hours ago
@Harper For US so in most cases yes. But that wouldn't effect existent intellectual property, would it?
– bruglesco
3 hours ago
@Harper For US so in most cases yes. But that wouldn't effect existent intellectual property, would it?
– bruglesco
3 hours ago
add a comment |
1 Answer
1
active
oldest
votes
Can a significant change in incentives void an employment contract?
Yes, because a party's unilateral, significant imposition which the counterparty did not expect strikes the premise of a contract/agreement being entered knowingly and willfully. Here, the contract or relevant portion thereof is voidable by the employee, because the employer's belated imposition is tantamount to a misrepresentation as contemplated in the Restatement (Second) of Contracts at § 164(1).
The contract clause regarding an employee's off-work hours might be unenforceable as unconscionable, more so where the incentive being slashed represents a significant portion of an employee's income (since it reflects that the employee's salary is not that high so start with). See the Restatement at § 177, 178, and 208.
is the employee entitled to any compensation or the right to retain
the property?
Yes, but the applicable alternative --compensation vs. withholding the IP-- depends on what agreement the employee reaches with the employer.
I presume what prompts this part of your question is the mention --in the Workplace SE post-- that the engineer rejected the employer's bid (offer is somewhat of a misnomer) of $25,000 for the employee's off-work IP.
The engineer's reluctance is rightfully cautious. Prior to accepting the employer's proposal, it is in the engineer's best interest to ensure (with enough specificity in a new contract) the terms and conditions of that proposal, lest the employer subsequently argue that the payment of $25,000 encompassed any and all subsequent IP produced by the employee during his employment there.
Likewise, insufficient caution by the engineer regarding the aforementioned proposal may permit a finding that the parties' subsequent conduct reflects the engineer's acceptance of the new conditions (including the slashing of incentives).
answered 6 hours ago
Iñaki ViggersIñaki Viggers
9,94821328
add a comment |
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1 Answer
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oldest
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1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
Can a significant change in incentives void an employment contract?
Yes, because a party's unilateral, significant imposition which the counterparty did not expect strikes the premise of a contract/agreement being entered knowingly and willfully. Here, the contract or relevant portion thereof is voidable by the employee, because the employer's belated imposition is tantamount to a misrepresentation as contemplated in the Restatement (Second) of Contracts at § 164(1).
The contract clause regarding an employee's off-work hours might be unenforceable as unconscionable, more so where the incentive being slashed represents a significant portion of an employee's income (since it reflects that the employee's salary is not that high so start with). See the Restatement at § 177, 178, and 208.
is the employee entitled to any compensation or the right to retain
the property?
Yes, but the applicable alternative --compensation vs. withholding the IP-- depends on what agreement the employee reaches with the employer.
I presume what prompts this part of your question is the mention --in the Workplace SE post-- that the engineer rejected the employer's bid (offer is somewhat of a misnomer) of $25,000 for the employee's off-work IP.
The engineer's reluctance is rightfully cautious. Prior to accepting the employer's proposal, it is in the engineer's best interest to ensure (with enough specificity in a new contract) the terms and conditions of that proposal, lest the employer subsequently argue that the payment of $25,000 encompassed any and all subsequent IP produced by the employee during his employment there.
Likewise, insufficient caution by the engineer regarding the aforementioned proposal may permit a finding that the parties' subsequent conduct reflects the engineer's acceptance of the new conditions (including the slashing of incentives).
answered 6 hours ago
Iñaki ViggersIñaki Viggers
9,94821328
add a comment |
Can a significant change in incentives void an employment contract?
Yes, because a party's unilateral, significant imposition which the counterparty did not expect strikes the premise of a contract/agreement being entered knowingly and willfully. Here, the contract or relevant portion thereof is voidable by the employee, because the employer's belated imposition is tantamount to a misrepresentation as contemplated in the Restatement (Second) of Contracts at § 164(1).
The contract clause regarding an employee's off-work hours might be unenforceable as unconscionable, more so where the incentive being slashed represents a significant portion of an employee's income (since it reflects that the employee's salary is not that high so start with). See the Restatement at § 177, 178, and 208.
is the employee entitled to any compensation or the right to retain
the property?
Yes, but the applicable alternative --compensation vs. withholding the IP-- depends on what agreement the employee reaches with the employer.
I presume what prompts this part of your question is the mention --in the Workplace SE post-- that the engineer rejected the employer's bid (offer is somewhat of a misnomer) of $25,000 for the employee's off-work IP.
The engineer's reluctance is rightfully cautious. Prior to accepting the employer's proposal, it is in the engineer's best interest to ensure (with enough specificity in a new contract) the terms and conditions of that proposal, lest the employer subsequently argue that the payment of $25,000 encompassed any and all subsequent IP produced by the employee during his employment there.
Likewise, insufficient caution by the engineer regarding the aforementioned proposal may permit a finding that the parties' subsequent conduct reflects the engineer's acceptance of the new conditions (including the slashing of incentives).
answered 6 hours ago
Iñaki ViggersIñaki Viggers
9,94821328
add a comment |
Can a significant change in incentives void an employment contract?
Yes, because a party's unilateral, significant imposition which the counterparty did not expect strikes the premise of a contract/agreement being entered knowingly and willfully. Here, the contract or relevant portion thereof is voidable by the employee, because the employer's belated imposition is tantamount to a misrepresentation as contemplated in the Restatement (Second) of Contracts at § 164(1).
The contract clause regarding an employee's off-work hours might be unenforceable as unconscionable, more so where the incentive being slashed represents a significant portion of an employee's income (since it reflects that the employee's salary is not that high so start with). See the Restatement at § 177, 178, and 208.
is the employee entitled to any compensation or the right to retain
the property?
Yes, but the applicable alternative --compensation vs. withholding the IP-- depends on what agreement the employee reaches with the employer.
I presume what prompts this part of your question is the mention --in the Workplace SE post-- that the engineer rejected the employer's bid (offer is somewhat of a misnomer) of $25,000 for the employee's off-work IP.
The engineer's reluctance is rightfully cautious. Prior to accepting the employer's proposal, it is in the engineer's best interest to ensure (with enough specificity in a new contract) the terms and conditions of that proposal, lest the employer subsequently argue that the payment of $25,000 encompassed any and all subsequent IP produced by the employee during his employment there.
Likewise, insufficient caution by the engineer regarding the aforementioned proposal may permit a finding that the parties' subsequent conduct reflects the engineer's acceptance of the new conditions (including the slashing of incentives).
answered 6 hours ago
Iñaki ViggersIñaki Viggers
9,94821328
Can a significant change in incentives void an employment contract?
Yes, because a party's unilateral, significant imposition which the counterparty did not expect strikes the premise of a contract/agreement being entered knowingly and willfully. Here, the contract or relevant portion thereof is voidable by the employee, because the employer's belated imposition is tantamount to a misrepresentation as contemplated in the Restatement (Second) of Contracts at § 164(1).
The contract clause regarding an employee's off-work hours might be unenforceable as unconscionable, more so where the incentive being slashed represents a significant portion of an employee's income (since it reflects that the employee's salary is not that high so start with). See the Restatement at § 177, 178, and 208.
is the employee entitled to any compensation or the right to retain
the property?
Yes, but the applicable alternative --compensation vs. withholding the IP-- depends on what agreement the employee reaches with the employer.
I presume what prompts this part of your question is the mention --in the Workplace SE post-- that the engineer rejected the employer's bid (offer is somewhat of a misnomer) of $25,000 for the employee's off-work IP.
The engineer's reluctance is rightfully cautious. Prior to accepting the employer's proposal, it is in the engineer's best interest to ensure (with enough specificity in a new contract) the terms and conditions of that proposal, lest the employer subsequently argue that the payment of $25,000 encompassed any and all subsequent IP produced by the employee during his employment there.
Likewise, insufficient caution by the engineer regarding the aforementioned proposal may permit a finding that the parties' subsequent conduct reflects the engineer's acceptance of the new conditions (including the slashing of incentives).
answered 6 hours ago
Iñaki ViggersIñaki Viggers
9,94821328
edited 4 hours ago
answered 6 hours ago
Iñaki ViggersIñaki Viggers
9,94821328
answered 6 hours ago
Iñaki ViggersIñaki Viggers
9,94821328
answered 6 hours ago
Iñaki ViggersIñaki Viggers
9,94821328
9,94821328
add a comment |
add a comment |
bruglesco is a new contributor. Be nice, and check out our Code of Conduct.
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3
At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.
– Charles E. Grant
6 hours ago
Is it at-will employment?
– Harper
3 hours ago
@Harper For US so in most cases yes. But that wouldn't effect existent intellectual property, would it?
– bruglesco
3 hours ago