An employment contract may state the amount of liquidated damages to be paid if the contract is breached. Upon a party's breach, the other party will recover this amount of damages whether actual damages are more or less than the liquidated amount.
If the agreed-upon liquidated damage amount is unreasonable, the Court will hold the liquidated damage clause to be void as a penalty. If the Court declares the clause to be void, the employee would have to prove the actual damages.
Florida Liquidated Damage Clause in Employment Contract Addressing Breach by Employer: A Comprehensive Overview Introduction: The Florida liquidated damage clause in an employment contract is a provision that addresses the consequences and compensation for breaches committed by the employer. It is designed to protect the rights of employees and ensure they receive fair compensation in case of employer violations. This article will provide a detailed description of the Florida liquidated damage clause, its purpose, and the different types that exist. Purpose of the Florida Liquidated Damage Clause: The primary objective of including a liquidated damage clause in an employment contract is to establish clear expectations and consequences for both parties involved. By specifying the amount of damages in advance, the clause helps avoid prolonged litigation processes and streamline resolution. Types of Florida Liquidated Damage Clauses in Employment Contracts: 1. General Liquidated Damages: This type of liquidated damage clause applies to a broad range of breaches committed by the employer, such as wrongful termination, non-payment of wages, or violation of employment terms. The specified amount serves as the predetermined compensation for the damages incurred by the employee due to the breach. 2. Non-Compete Agreement Breach: When an employer breaches a non-compete agreement, a liquidated damage clause helps address the resulting harm to the employee's professional career. The agreed-upon sum in this clause compensates the employee for any losses suffered due to the employer's unauthorized competition or disclosure of proprietary information. 3. Confidentiality Clause Breach: In cases where an employer fails to maintain the confidentiality of sensitive information or trade secrets, this type of liquidated damage clause is invoked. It ensures that the employee is compensated for any damages incurred due to unauthorized disclosure of confidential information. 4. Unlawful Deductions or Wage Violations: If an employer unlawfully deducts wages or fails to comply with minimum wage or overtime requirements, this liquidated damage clause outlines the amount of compensation the employee is entitled to. Such breaches are considered serious as they directly affect an employee's financial well-being. 5. Discrimination or Harassment Breach: This liquidated damage clause is invoked when an employer breaches anti-discrimination or anti-harassment policies, resulting in harm or distress to the employee. The specified amount serves as compensation for the emotional and psychological damages caused by the breach. Conclusion: The inclusion of a Florida liquidated damage clause in an employment contract is crucial to protect the rights of employees and ensure fair compensation for any breaches committed by the employer. By addressing various types of breaches, such as wrongful termination, non-compete agreement violations, and wage irregularities, these clauses provide a means of resolving disputes in a straightforward and efficient manner. It is essential for employees to carefully review their employment contracts and understand the specific liquidated damage provisions applicable to their circumstances.
