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Can a significant change in incentives void an employment contract?


Big corporation in the UK, Intellectual Property and a ContractIntellectual Property of a bankrupt companyCan prices change in the middle of a contractCan a minor legally sign an employment contract?Contract change after both parties signCan employer claim ownership of intellectual property made while not at work?Can a business unilaterally change a contract?Legality of employment contract clause - Training reimbursementAnnual Contract of employment with the same employerAssignment of Inventions in Employment Contract for Software Development













11















Recently over at The Workplace there was a question regarding an employee withholding valuable information that they developed in their spare time. According to their employment contract all intellectual property they develop, regardless of work hours, belongs to the company.



The company also recently slashed the incentive program that the employee has been generating a significant amount of their income from. (A quick estimate provided a $60k/year difference in income for said employee.)



Since the employee only spent their off hours developing this intellectual property for the obviously significant incentive money, is the employee entitled to any compensation or the right to retain the property?



Since I don't have the actual contract I will simply assert for the purpose of this question that the contract has no stipulations regarding this.



As I am in the United States myself, I am mostly concerned with answers from the US. However, I would be interested to hear how this would be handled elsewhere as well.










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  • Of course not? This is something you can easily Google for...

    – Andy Ray
    2 hours ago






  • 2





    @AndyRay Citation needed? At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.

    – Charles E. Grant
    2 hours ago
















11















Recently over at The Workplace there was a question regarding an employee withholding valuable information that they developed in their spare time. According to their employment contract all intellectual property they develop, regardless of work hours, belongs to the company.



The company also recently slashed the incentive program that the employee has been generating a significant amount of their income from. (A quick estimate provided a $60k/year difference in income for said employee.)



Since the employee only spent their off hours developing this intellectual property for the obviously significant incentive money, is the employee entitled to any compensation or the right to retain the property?



Since I don't have the actual contract I will simply assert for the purpose of this question that the contract has no stipulations regarding this.



As I am in the United States myself, I am mostly concerned with answers from the US. However, I would be interested to hear how this would be handled elsewhere as well.










share|improve this question







New contributor




bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.




















  • Of course not? This is something you can easily Google for...

    – Andy Ray
    2 hours ago






  • 2





    @AndyRay Citation needed? At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.

    – Charles E. Grant
    2 hours ago














11












11








11








Recently over at The Workplace there was a question regarding an employee withholding valuable information that they developed in their spare time. According to their employment contract all intellectual property they develop, regardless of work hours, belongs to the company.



The company also recently slashed the incentive program that the employee has been generating a significant amount of their income from. (A quick estimate provided a $60k/year difference in income for said employee.)



Since the employee only spent their off hours developing this intellectual property for the obviously significant incentive money, is the employee entitled to any compensation or the right to retain the property?



Since I don't have the actual contract I will simply assert for the purpose of this question that the contract has no stipulations regarding this.



As I am in the United States myself, I am mostly concerned with answers from the US. However, I would be interested to hear how this would be handled elsewhere as well.










share|improve this question







New contributor




bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.












Recently over at The Workplace there was a question regarding an employee withholding valuable information that they developed in their spare time. According to their employment contract all intellectual property they develop, regardless of work hours, belongs to the company.



The company also recently slashed the incentive program that the employee has been generating a significant amount of their income from. (A quick estimate provided a $60k/year difference in income for said employee.)



Since the employee only spent their off hours developing this intellectual property for the obviously significant incentive money, is the employee entitled to any compensation or the right to retain the property?



Since I don't have the actual contract I will simply assert for the purpose of this question that the contract has no stipulations regarding this.



As I am in the United States myself, I am mostly concerned with answers from the US. However, I would be interested to hear how this would be handled elsewhere as well.







contract-law intellectual-property






share|improve this question







New contributor




bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.











share|improve this question







New contributor




bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.









share|improve this question




share|improve this question






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asked 3 hours ago









bruglescobruglesco

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bruglesco is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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  • Of course not? This is something you can easily Google for...

    – Andy Ray
    2 hours ago






  • 2





    @AndyRay Citation needed? At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.

    – Charles E. Grant
    2 hours ago


















  • Of course not? This is something you can easily Google for...

    – Andy Ray
    2 hours ago






  • 2





    @AndyRay Citation needed? At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.

    – Charles E. Grant
    2 hours ago

















Of course not? This is something you can easily Google for...

– Andy Ray
2 hours ago





Of course not? This is something you can easily Google for...

– Andy Ray
2 hours ago




2




2





@AndyRay Citation needed? At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.

– Charles E. Grant
2 hours ago






@AndyRay Citation needed? At least in California blanket assignments of IP to the employer may be unenforceable. I think in other states it requires compensation. Which leads to the question here: if the company unilaterally changes the compensation, does it void the previous agreement.

– Charles E. Grant
2 hours ago











1 Answer
1






active

oldest

votes


















5















Can a significant change in incentives void an employment contract?




Yes, because a party's unilateral, significant imposition which the counterparty did not expect strikes the premise of a contract/agreement being entered knowingly and willfully.



The contract clause regarding an employee's off-work hours might be unenforceable as unconscionable, more so where the incentive being slashed represents a significant portion of an employee's income (since it reflects that the employee's salary is not that high).




is the employee entitled to any compensation or the right to retain
the property?




Yes, but the applicable alternative --compensation vs. withholding the IP-- depends on what agreement the employee reaches with the employer.



I presume what prompts this part of your question is the mention --in the Workplace SE post-- that the engineer rejected the employer's bid (offer is somewhat of a misnomer) of $25,000 for the employee's off-work IP.



The engineer's reluctance is rightfully cautious. Prior to accepting the employer's proposal, it is in the engineer's best interest to ensure (with enough specificity in a new contract) the terms and conditions of that proposal, lest the employer subsequently argue that the payment of $25,000 encompassed any and all subsequent IP produced by the employee during his employment there.



Likewise, insufficient caution by the engineer regarding the aforementioned proposal may permit a finding that the parties' subsequent conduct reflects the engineer's acceptance of the new conditions (including the slashed incentives).






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    1 Answer
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    1 Answer
    1






    active

    oldest

    votes









    active

    oldest

    votes






    active

    oldest

    votes









    5















    Can a significant change in incentives void an employment contract?




    Yes, because a party's unilateral, significant imposition which the counterparty did not expect strikes the premise of a contract/agreement being entered knowingly and willfully.



    The contract clause regarding an employee's off-work hours might be unenforceable as unconscionable, more so where the incentive being slashed represents a significant portion of an employee's income (since it reflects that the employee's salary is not that high).




    is the employee entitled to any compensation or the right to retain
    the property?




    Yes, but the applicable alternative --compensation vs. withholding the IP-- depends on what agreement the employee reaches with the employer.



    I presume what prompts this part of your question is the mention --in the Workplace SE post-- that the engineer rejected the employer's bid (offer is somewhat of a misnomer) of $25,000 for the employee's off-work IP.



    The engineer's reluctance is rightfully cautious. Prior to accepting the employer's proposal, it is in the engineer's best interest to ensure (with enough specificity in a new contract) the terms and conditions of that proposal, lest the employer subsequently argue that the payment of $25,000 encompassed any and all subsequent IP produced by the employee during his employment there.



    Likewise, insufficient caution by the engineer regarding the aforementioned proposal may permit a finding that the parties' subsequent conduct reflects the engineer's acceptance of the new conditions (including the slashed incentives).






    share|improve this answer





























      5















      Can a significant change in incentives void an employment contract?




      Yes, because a party's unilateral, significant imposition which the counterparty did not expect strikes the premise of a contract/agreement being entered knowingly and willfully.



      The contract clause regarding an employee's off-work hours might be unenforceable as unconscionable, more so where the incentive being slashed represents a significant portion of an employee's income (since it reflects that the employee's salary is not that high).




      is the employee entitled to any compensation or the right to retain
      the property?




      Yes, but the applicable alternative --compensation vs. withholding the IP-- depends on what agreement the employee reaches with the employer.



      I presume what prompts this part of your question is the mention --in the Workplace SE post-- that the engineer rejected the employer's bid (offer is somewhat of a misnomer) of $25,000 for the employee's off-work IP.



      The engineer's reluctance is rightfully cautious. Prior to accepting the employer's proposal, it is in the engineer's best interest to ensure (with enough specificity in a new contract) the terms and conditions of that proposal, lest the employer subsequently argue that the payment of $25,000 encompassed any and all subsequent IP produced by the employee during his employment there.



      Likewise, insufficient caution by the engineer regarding the aforementioned proposal may permit a finding that the parties' subsequent conduct reflects the engineer's acceptance of the new conditions (including the slashed incentives).






      share|improve this answer



























        5












        5








        5








        Can a significant change in incentives void an employment contract?




        Yes, because a party's unilateral, significant imposition which the counterparty did not expect strikes the premise of a contract/agreement being entered knowingly and willfully.



        The contract clause regarding an employee's off-work hours might be unenforceable as unconscionable, more so where the incentive being slashed represents a significant portion of an employee's income (since it reflects that the employee's salary is not that high).




        is the employee entitled to any compensation or the right to retain
        the property?




        Yes, but the applicable alternative --compensation vs. withholding the IP-- depends on what agreement the employee reaches with the employer.



        I presume what prompts this part of your question is the mention --in the Workplace SE post-- that the engineer rejected the employer's bid (offer is somewhat of a misnomer) of $25,000 for the employee's off-work IP.



        The engineer's reluctance is rightfully cautious. Prior to accepting the employer's proposal, it is in the engineer's best interest to ensure (with enough specificity in a new contract) the terms and conditions of that proposal, lest the employer subsequently argue that the payment of $25,000 encompassed any and all subsequent IP produced by the employee during his employment there.



        Likewise, insufficient caution by the engineer regarding the aforementioned proposal may permit a finding that the parties' subsequent conduct reflects the engineer's acceptance of the new conditions (including the slashed incentives).






        share|improve this answer
















        Can a significant change in incentives void an employment contract?




        Yes, because a party's unilateral, significant imposition which the counterparty did not expect strikes the premise of a contract/agreement being entered knowingly and willfully.



        The contract clause regarding an employee's off-work hours might be unenforceable as unconscionable, more so where the incentive being slashed represents a significant portion of an employee's income (since it reflects that the employee's salary is not that high).




        is the employee entitled to any compensation or the right to retain
        the property?




        Yes, but the applicable alternative --compensation vs. withholding the IP-- depends on what agreement the employee reaches with the employer.



        I presume what prompts this part of your question is the mention --in the Workplace SE post-- that the engineer rejected the employer's bid (offer is somewhat of a misnomer) of $25,000 for the employee's off-work IP.



        The engineer's reluctance is rightfully cautious. Prior to accepting the employer's proposal, it is in the engineer's best interest to ensure (with enough specificity in a new contract) the terms and conditions of that proposal, lest the employer subsequently argue that the payment of $25,000 encompassed any and all subsequent IP produced by the employee during his employment there.



        Likewise, insufficient caution by the engineer regarding the aforementioned proposal may permit a finding that the parties' subsequent conduct reflects the engineer's acceptance of the new conditions (including the slashed incentives).







        share|improve this answer














        share|improve this answer



        share|improve this answer








        edited 1 hour ago

























        answered 2 hours ago









        Iñaki ViggersIñaki Viggers

        9,89321228




        9,89321228




















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