Executive Employment Agreement: Disability Clause
// Dallas, Texas, United States // Attorney Keith Clouse // Keith Clouse
Keith Clouse, a Dallas employment lawyer who regularly negotiates employment agreements on behalf of executives, notes that some provisions may get overlooked during the negotiation process. One such provision is a disability clause. Parties may think the clause is unimportant because they believe it will not likely take effect. Nevertheless, because both an employer and an executive have an interest in specifying what happens should the executive become incapable of performing his job duties, this clause should be drafted to protect the parties’ interests.
Most employers make accommodations for executives who are disabled; however, if an executive is unable to perform his job duties for a substantial period of time, the employer must make other arrangements. A disability clause accomplishes this by setting out the parties’ obligations should the executive become disabled. Most provide that the executive will continue receiving his salary and benefits during a set disability period. (Disability periods often range from three months to one year.) At the conclusion of that period, if the executive is still unable to perform his job duties, his employment typically terminates and salary and bonus payments cease.
This article is presented by the Dallas employment attorneys at Clouse Dunn LLP. To speak to an employment lawyer about an employment agreement, send an email to debra@clousedunn.com or call (214) 239-2705.
Contact Keith Clouse
KEITH A. CLOUSE
Clouse Dunn LLP
214.220.2722 214.220.3833 ( fax) keith@clousedunn.com
