The relationship of an employer and an employee exists when, pursuant to an agreement of the parties, one person, the employee, agrees to work under the direction and control of another, the employer, for compensation. The agreement of the parties is a contract, and it is therefore subject to all the principles applicable to contracts. The contract may be implied. Most employment contracts are implied oral agreements. In this type of arrangement, the employer is accepting the services of the employee that a reasonable person would recognize as being such that compensation would be given to the employee.
The contract will often be an express written contract. In other words, the duties of the employee will be specifically set forth in writing in the contract. The attached form is a sample agreement between a nonprofit corporation and an executive director.
Louisiana Employment Agreement with Executive Director of a Nonprofit Corporation: Detailed Description and Types including a Confidentiality Clause Introduction: An employment agreement is a legally binding contract between a nonprofit corporation and its Executive Director, outlining the expectations and conditions of the employment relationship. In Louisiana, employment agreements for Executive Directors of nonprofit corporations often include a confidentiality clause to protect the organization's sensitive information, trade secrets, and proprietary knowledge. Let's explore the key elements of such an agreement, including the different types that may exist. 1. General Overview: The Louisiana Employment Agreement with Executive Director of a Nonprofit Corporation is a written document that sets forth the terms and conditions under which an Executive Director is employed by a nonprofit organization. It explicitly defines the rights, obligations, and responsibilities of both parties. 2. Details Covered: a. Position and Duties: This section specifies the Executive Director's role, responsibilities, reporting structure, and any supervisory duties. b. Compensation: It outlines the Executive Director's salary, benefits, reimbursement policies, and any performance-based bonuses or incentives. c. Term: The agreement typically determines the duration of employment, including provisions for renewal, termination, or resignation. d. Confidentiality Clause: A crucial aspect of most agreements, the confidentiality clause ensures that the Executive Director will maintain the utmost confidentiality regarding the nonprofit corporation's proprietary information, trade secrets, donor lists, financial records, and strategic plans. Breaching this clause may lead to legal consequences. e. Non-compete/Non-solicitation: Although not always included, some agreements may contain provisions preventing the Executive Director from competing with the nonprofit corporation during employment or soliciting its employees, donors, or volunteers after termination. f. Intellectual Property: This section clarifies ownership rights and utilization rights of any intellectual property created by the Executive Director during employment. g. Performance Evaluation: The agreement may outline the process for evaluating the Executive Director's performance periodically, including the metrics, timelines, and performance improvement plans if necessary. h. Termination: Terms regarding early termination, resignation, severance packages, or the procedure for removing an Executive Director for cause (in cases of misconduct or performance failure) is specified in this section. i. Governing Law and Dispute Resolution: The agreement typically identifies the applicable Louisiana laws and may include provisions on dispute resolution methods such as arbitration or mediation. 3. Types of Louisiana Employment Agreements with Executive Directors: a. Fixed-Term Agreement: This type of agreement has a specific duration, such as one or three years. b. Renewable Agreement: Here, the employment term is automatically renewed at the end of each specified period unless either party provides notice of non-renewal within a given timeframe. c. At-Will Agreement: This agreement allows either party to terminate the employment at any time without cause or notice. In conclusion, a Louisiana Employment Agreement with an Executive Director of a Nonprofit Corporation, incorporating a confidentiality clause, is a vital legal document setting out the terms and conditions of employment. It covers multiple aspects like position, duties, compensation, confidentiality, non-compete/non-solicitation, termination, and more. Tailoring the agreement to the unique needs of the nonprofit organization is crucial.
