W orking T hrough C ommon
E mployment L aw I ssues :
E mployment L aw 101
By Jim Griffis
Have you ever been confused by employment
law terminology or concepts. If so, you are not
alone. Here are some common issues that arise
in employment law.
Termination of Employment
Employees often claim that they have been
wrongfully terminated by their employer.
While this may be true in some instances, in
many others it is not. The law provides protec-
tion from wrongful termination if the employ-
er’s reason for termination violates the law.
For example, if the termination is based upon
the employee’s race, age, gender, disability, or
other protected class, then the termination can
be wrongful. However, wrongful termination
does not occur simply because the employer
makes an unfair or unwise decision, especially
when the employee is an at-will employee.
In Texas, an employee is an at-will employee
unless there is a specific agreement to the
contrary.
Non-Compete Agreements
Non-compete agreements are alive and well
in Texas. To be enforceable, a non-compete
agreement must be ancillary to an otherwise
enforceable agreement, and it must be reason-
able in time, geographic area, and the scope
of the activity being restricted. Non-compete
agreements should be custom-tailored for each
employee’s unique situation.
time requirements
of the Fair Labor
Standards
Act.
Some common
exemptions are
for
executives,
professionals,
highly-compensated employees, and administra-
tors. To qualify for these exemptions, the employee
must receive a minimum salary and perform certain
duties. If either the salary or duties component is
not met, then the salaried employee will be entitled
to overtime if he or she works more than 40 hours
per work week.
Independent Contractor vs. Employee
Whether a worker is an independent contractor
or employee is not always easy to determine. Most
government agencies presume that a worker is an
employee rather than an independent contractor.
This presumption can be rebutted by the employer,
but rebutting this presumption can be difficult, espe-
cially if the worker is economically dependent on
the employer.
The United States Department of Labor will often
audit employers to determine if they are misclassify-
ing workers as independent contractors. The reper-
cussions of misclassification can be severe—an
employer may owe back wages for minimum wage
and overtime for 2 to 3 years, plus fines, penalties,
and interest.
Jim Griffis is an attorney with Harris, Finley & Bogle, P.C. He concen-
trates his 15 year legal practice in labor and employment law. Mr.
Griffis represents both employers and employees in various labor and
employment matters.
Salaried Workers May Be Entitled To Overtime
The answer depends upon whether the
salaried worker is exempt from the over-
There are additional requirements for physi-
cian non-compete agreements. One require-
ment is that the non-compete must allow the This article is general in nature. If you need assistance in
physician to buy-out his or her non-compete at working your way through employment issues, you should
contact an experienced labor and employment attorney.
a reasonable price.
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