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.
The Ohio Liquidated Damage Clause in an employment contract is a provision that serves to address any potential breach by an employer. This clause outlines the consequences an employer would face in the event of a breach of contract, providing a pre-determined amount of damages or compensation. There are several types of Ohio Liquidated Damage Clauses that can be included in an employment contract, depending on the specific circumstances and parties involved. Some common types include: 1. General Liquidated Damages Clause: This type of clause simply specifies a fixed amount of damages that the employer agrees to pay in the event of a breach. The predetermined amount should be reasonably calculated to account for the potential harm caused by the breach. 2. Liquidated Damages for Non-Compete Agreements: In Ohio, employers can include liquidated damages provisions specifically tailored to non-compete agreements. These clauses determine the amount of damages an employee would be liable to pay, in case they breach the non-compete agreement by competing with the employer after leaving the company. 3. Liquidated Damages for Confidentiality Breach: Similarly, employers can include liquidated damages clauses that address breaches of confidentiality provisions. These clauses specify the amount an employee would be required to pay if they unlawfully disclose confidential information or trade secrets of the company. 4. Liquidated Damages for Intellectual Property Infringement: In cases where intellectual property rights are at stake, employers may include a specific clause to address potential breaches. This clause would outline the amount of damages an employer could seek if the employee infringes upon the company's intellectual property rights. It is important to note that while liquidated damages clauses are enforceable in Ohio employment contracts, courts have the authority to review and assess the reasonableness of the specified amounts. If a predetermined amount is deemed excessive or punitive, the court may adjust it accordingly. Employers should therefore strive to ensure that the liquidated damages provision is fair, reasonable, and accurately reflects the potential harm caused by a breach.The Ohio Liquidated Damage Clause in an employment contract is a provision that serves to address any potential breach by an employer. This clause outlines the consequences an employer would face in the event of a breach of contract, providing a pre-determined amount of damages or compensation. There are several types of Ohio Liquidated Damage Clauses that can be included in an employment contract, depending on the specific circumstances and parties involved. Some common types include: 1. General Liquidated Damages Clause: This type of clause simply specifies a fixed amount of damages that the employer agrees to pay in the event of a breach. The predetermined amount should be reasonably calculated to account for the potential harm caused by the breach. 2. Liquidated Damages for Non-Compete Agreements: In Ohio, employers can include liquidated damages provisions specifically tailored to non-compete agreements. These clauses determine the amount of damages an employee would be liable to pay, in case they breach the non-compete agreement by competing with the employer after leaving the company. 3. Liquidated Damages for Confidentiality Breach: Similarly, employers can include liquidated damages clauses that address breaches of confidentiality provisions. These clauses specify the amount an employee would be required to pay if they unlawfully disclose confidential information or trade secrets of the company. 4. Liquidated Damages for Intellectual Property Infringement: In cases where intellectual property rights are at stake, employers may include a specific clause to address potential breaches. This clause would outline the amount of damages an employer could seek if the employee infringes upon the company's intellectual property rights. It is important to note that while liquidated damages clauses are enforceable in Ohio employment contracts, courts have the authority to review and assess the reasonableness of the specified amounts. If a predetermined amount is deemed excessive or punitive, the court may adjust it accordingly. Employers should therefore strive to ensure that the liquidated damages provision is fair, reasonable, and accurately reflects the potential harm caused by a breach.
