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.
Kansas Liquidated Damage Clause in Employment Contract Addressing Breach by Employer. The Kansas liquidated damage clause in an employment contract provides protection for employees in case of a breach by the employer. It serves as a predetermined amount of compensation that the employer is obligated to pay to the employee if certain specific breaches occur. One type of Kansas liquidated damage clause is the Non-Compete Agreement breach. This clause addresses situations where the employer engages in actions that violate the terms of the non-compete agreement. This agreement restricts the employer from competing with the employee's business or engaging in similar activities within a specified geographical area and time frame after termination of employment. In the event of a breach, the liquidated damages' clause ensures that the employee is compensated for any harm caused by the employer's actions. Another type is the Confidentiality Agreement breach. This clause addresses situations where the employer discloses or uses the employee's confidential information, such as trade secrets, client lists, or proprietary information, without the employee's consent. The liquidated damages' clause allows the employee to seek compensation for any damages suffered due to the breach. Additionally, the Kansas liquidated damage clause may also cover breaches related to employment termination. This could include situations where the employer wrongfully terminates the employee without cause or fails to provide proper notice as required by the employment contract or state regulations. The liquidated damages' clause in such cases ensures that the employee is compensated for any lost wages or other damages caused by the employer's breach. It is important to note that the enforceability of liquidated damage clauses in Kansas employment contracts is subject to certain legal constraints. The Kansas courts generally require that the liquidated damages be reasonable and proportionate to the potential harm caused by the breach. Therefore, it is crucial for both parties to carefully negotiate and include a reasonable liquidated damages clause in the employment contract to ensure its validity and enforceability. In conclusion, the Kansas liquidated damage clause in an employment contract addressing breach by an employer provides necessary protection for employees. Different types of breaches, including non-compete agreement violations, confidentiality agreement breaches, and employment termination breaches, can be covered by specific liquidated damages clauses. However, it is crucial for both parties to seek legal advice and carefully negotiate the terms to ensure the clause's enforceability and fairness.
