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 San Bernardino, California liquidated damage clause in an employment contract addressing breach by an employer is a provision specifically designed to protect employees in cases of contract violation. This clause ensures that if an employer breaches the terms of the employment contract, the affected employee has the right to receive predetermined compensation or damages. In San Bernardino, California, there are two main types of liquidated damage clauses in employment contracts addressing breach by an employer: specified liquidated damage clauses and general liquidated damage clauses. 1. Specified Liquidated Damage Clause: This type of clause specifies the exact amount or formula to calculate damages that an employee is entitled to in case of a breach. The amount is predetermined and agreed upon by both parties during the negotiation of the contract. It serves as an easy and straightforward method to quantify the damages suffered by the employee as a result of the employer's breach. Example: In the event of the employer's breach, the employee shall be entitled to receive a specified amount of $10,000 as liquidated damages, regardless of the actual harm caused. 2. General Liquidated Damage Clause: Unlike the specified liquidated damage clause, this type doesn't specify the exact amount of damages upfront. It typically involves a more subjective assessment of the harm suffered by the employee due to the employer's breach. The damages awarded under a general liquidated damage clause are usually determined by a court or an arbitrator after considering various factors and evidence presented by both parties. Example: In the event of the employer's breach, the employee shall be entitled to receive liquidated damages determined by a court based on the actual harm suffered, including lost wages, emotional distress, and other reasonable foreseeable damages. Employment contracts with liquidated damage clauses provide a sense of security for employees by setting clear expectations, discouraging employers from violating contractual obligations, and ensuring employees receive fair compensation for the harm caused by such breaches. It is important for both employers and employees to carefully review and negotiate the terms of the liquidated damage clause to ensure it aligns with their respective interests and protects their rights effectively.The San Bernardino, California liquidated damage clause in an employment contract addressing breach by an employer is a provision specifically designed to protect employees in cases of contract violation. This clause ensures that if an employer breaches the terms of the employment contract, the affected employee has the right to receive predetermined compensation or damages. In San Bernardino, California, there are two main types of liquidated damage clauses in employment contracts addressing breach by an employer: specified liquidated damage clauses and general liquidated damage clauses. 1. Specified Liquidated Damage Clause: This type of clause specifies the exact amount or formula to calculate damages that an employee is entitled to in case of a breach. The amount is predetermined and agreed upon by both parties during the negotiation of the contract. It serves as an easy and straightforward method to quantify the damages suffered by the employee as a result of the employer's breach. Example: In the event of the employer's breach, the employee shall be entitled to receive a specified amount of $10,000 as liquidated damages, regardless of the actual harm caused. 2. General Liquidated Damage Clause: Unlike the specified liquidated damage clause, this type doesn't specify the exact amount of damages upfront. It typically involves a more subjective assessment of the harm suffered by the employee due to the employer's breach. The damages awarded under a general liquidated damage clause are usually determined by a court or an arbitrator after considering various factors and evidence presented by both parties. Example: In the event of the employer's breach, the employee shall be entitled to receive liquidated damages determined by a court based on the actual harm suffered, including lost wages, emotional distress, and other reasonable foreseeable damages. Employment contracts with liquidated damage clauses provide a sense of security for employees by setting clear expectations, discouraging employers from violating contractual obligations, and ensuring employees receive fair compensation for the harm caused by such breaches. It is important for both employers and employees to carefully review and negotiate the terms of the liquidated damage clause to ensure it aligns with their respective interests and protects their rights effectively.
