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.
Oregon Liquidated Damage Clause in Employment Contract Addressing Breach by Employer In Oregon, the inclusion of a liquidated damage clause in an employment contract can provide protection for employees in the event of a breach by their employer. This clause serves as a pre-determined amount of damages agreed upon by both parties, which the employer will have to pay if they fail to meet their obligations under the contract. Under Oregon employment law, the liquidated damage clause must comply with certain requirements to be considered valid and enforceable. The clause must be reasonable and reflect the actual damages the employee may suffer as a result of the employer's breach. It cannot be a penalty or an arbitrary amount. The purpose of the liquidated damage clause is to provide fair compensation for the employee's losses, rather than punish the employer. There are different types of liquidated damage clauses that can be included in an employment contract in Oregon to address the breach by an employer: 1. Non-Competition Clause: This type of liquidated damage clause is commonly used to protect the employer's business interests. It prohibits the employee from working for a competitor or starting a competing business for a specified period of time after termination. If the employee breaches this clause, they may be required to pay a predetermined amount agreed upon by both parties. 2. Non-Solicitation Clause: This clause restricts the employee from soliciting or poaching clients or employees from the employer's business after termination. If the employee breaches this clause, they may be liable to pay liquidated damages as per the agreed-upon amount. 3. Confidentiality Clause: This type of liquidated damage clause aims to protect the employer's confidential information and trade secrets. It restricts the employee from disclosing or using confidential information for personal gain or to the disadvantage of the employer. Breaching this clause may result in the employee being responsible for paying liquidated damages. It is important to note that the exact terms and conditions of the liquidated damage clause will vary depending on the specific employment contract. Employers and employees are advised to consult with legal professionals to ensure the clause accurately reflects their intentions and complies with Oregon employment laws. Overall, the inclusion of a liquidated damage clause in an employment contract in Oregon can provide both employers and employees with a sense of security and protection in the event of a breach. By clearly defining the consequences for breaching specific contractual obligations, these clauses help mitigate the risks associated with contract disputes and violation of employment terms.
