12/29/2013 // Dallas, Texas, United States // Attorney Keith Clouse (Blog) // Keith Clouse

Some employment contracts contain “forum-selection” clauses. A forum-selection clause dictates where a dispute over the employment contract will be litigated. The parties essentially agree to sue and be sued only in a specific state.

For employers with employees in multiple states, forum-selection clauses make sense. The employer can bring all employment-related disputes to its home state. The company’s in-house legal team and its outside counsel can work together on matters, and they will have easy access to company resources. For executives, forum-selection clauses can make litigating a case challenging. If the executive was based in a remote office, the time, cost, and difficulty of litigating a lawsuit in another state may dissuade the executive from bringing suit.

While courts generally enforce forum-selection clauses, a court will examine the individual circumstances of a particular case to determine if it is fair and reasonable to enforce a forum-selection clause. The court will look at factors such as the convenience of the parties, whether fraud was involved in making the agreement, and if enforcement raises public policy concerns.

To learn more about employment contracts for executive-level employees, contact an employment lawyer in your area. This article is presented by the employment law attorneys at Clouse Dunn LLP. For inquiries, 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

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