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Dallas Employment Contract Lawyer: Automatic Contract Renewals

// Dallas, Texas, United States // Attorney Keith Clouse (Press Release) // Keith Clouse

Keith Clouse, a Dallas, Texas employment lawyer who advises executives on employment agreement matters, discusses automatic renewal clauses.

Most employment agreements are in effect for a set term, usually two to three years. Some contracts terminate at the conclusion of the term. Others automatically renew via “evergreen clauses.” While an evergreen clause could be structured so that a contract automatically renews indefinitely, most clauses provide for automatic renewal on a yearly basis for a set time period, such as three years. If a party does not wish to automatically renew the contract, it must notify the other party well in advance of the contract’s termination date; many contracts provide that notice must be given six months before the termination date.

An automatic renewal clause can provide enormous benefits to an executive. First of all, it eliminates the potential problems, hassle, and expenses that could arise if a new agreement had to be negotiated each year. Second, because most automatic renewal provisions require significant advance notice should an employer not wish to automatically renew the agreement, an executive who receives such notice should have time to explore other options while still employed.

This article is presented by the Dallas employment attorneys at Clouse Dunn LLP. To speak to an employment lawyer about an executive employment agreement, send an email to or call (214) 239-2705.

Contact Keith Clouse


Clouse Dunn LLP

214.220.2722 214.220.3833 ( fax)