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.
Missouri Liquidated Damage Clause in Employment Contract Addressing Breach by Employer: A Missouri Liquidated Damage Clause in an employment contract is a provision that specifies the predetermined amount of damages an employer would have to pay the employee in the event of a breach of contract by the employer. This clause serves as a way to protect employees from potential harm caused by an employer's failure to fulfill their contractual obligations. Different types of Missouri Liquidated Damage Clauses in Employment Contracts Addressing Breach by Employer can include: 1. General Liquidated Damage Clause: This type of clause defines a specific amount of damages that will be awarded to the employee if the employer breaches the contract. The predetermined amount is typically a reasonable estimation of the potential loss the employee may suffer due to the breach. 2. Non-Compete Liquidated Damage Clause: This clause is specifically designed to address breaches related to non-compete agreements. It establishes the amount of damages an employer must pay if they violate the non-compete provision, such as engaging in competing business activities during or after employment. 3. Confidentiality Liquidated Damage Clause: If an employer breaches the confidentiality agreement, this type of clause specifies the amount of damages the employer must pay as a result. It aims to protect any trade secrets or sensitive information shared with the employee during their employment. 4. Non-Solicitation Liquidated Damage Clause: This clause comes into play when an employer violates the non-solicitation provision of the contract. It establishes the amount of damages the employer must pay if they approach employees or clients of the company to lure them away. Missouri courts generally enforce liquidated damage clauses in employment contracts as long as they meet certain requirements. The predetermined damages should reasonably approximate the harm caused by the breach, and it shouldn't be deemed as a penalty to the breaching party. Employers and employees should consult with legal professionals well-versed in Missouri employment law to ensure that the liquidated damage clause in their employment contract adheres to the state's specific requirements and provides fair compensation in case of a breach.
