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Joseph
Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 4872
Experience:  Extensive experience representing employees and management
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Hey, I was going to do what you suggested and send the 2 other

Customer Question

Hey, I was going to do what you suggested and send the 2 other ex employee settlement agreements..1has agreed to certain amount and the other has not yet. ( trying to avoid more judgements since I am trying to sell the business) what is the legal agreement that you can have people sign to keep the from talking? Like the document that companies make people sign that they settle with?
I assume the documents on rocketlawyer.com are somewhat enforceable? Now that I know that I can write off the fringe benefit of the "lodging" I supplied them with I am not too hesitant about sending them money because come tax day I will make it all back.
Submitted: 11 months ago.
Category: California Employment Law
Expert:  Joseph replied 11 months ago.
Hello Jeff,

I'm glad to hear that one employee has already agreed to a certain amount and that the other may as well. It's definitely to tie up as many loose ends (including potential legal liabilities) prior to the sale of the business.

The legal agreement that you are looking for is called a non-disclosure agreement. It states that in exchange for the amount that the employee is receiving, in addition to waiving any and all claims that he or she may have against the employer, he or she also will not discuss the terms and conditions of the settlement with anyone else. The non-disclosure agreement can just be an additional provision or clause in a settlement agreement, or it can be a separate document, but I'd suggest incorporating it into the settlement agreement itself.

While somewhat redundant, you can also have a confidentiality clause, stating that all communications between you and the employee, including the settlement agreement are confidential between you, and violating that clause would cause a breach of the agreement, entitling you to receive the settlement amount back from the employee.

While the non-disclosure and confidentiality provisions are redundant, you may as well put both of them in there to hammer home the point that disclosing any information about the agreement would result in a breach and you getting back the settlement amount.

If the employee violates the non-disclosure agreement, the employer is then entitled to sue for breach of contract and get back everything that was paid to the employee in exchange for the settlement and agreement not to disclose any terms and conditions of the settlement.

The documents from rocketlawyer are fully enforceable once completed. I think that's one of the best free to low cost services out there for creating your own enforceable legal documents quickly and efficiently.

I'm glad to hear that you are able to write off all the lodging expenses, so you will be able to get back the money you're sending come tax time. That's a great development.

As always, please let me know if you have any follow up or clarifying questions.

Thanks and best of luck!
Customer: replied 11 months ago.
thanks. I assume I should put some kind of language about by her signing the agreement that we no not held liable etc that she is paid in full etc etc? Any chance you review documents once I am done for extra $? If it helps this person is actually moving to California today.
Expert:  Joseph replied 11 months ago.
Hello Jeff,

Yes, it would definitely be important to include a provision that by signing the agreement that she is agreeing that she is paid in full and that she is releasing you from any liability for this claim or any other claim she has or may have against you.

I'd be happy to review the agreement online here (or in another question) and give you some suggestions. (I can't write or re-write it for you, since that veers into legal representation). I'd only ask that you continue to accept my answers, give me great feedback (excellent service and 10s for customer satisfaction), and maybe throw in a bonus too.

Thanks!
Joseph, Lawyer
Satisfied Customers: 4872
Experience: Extensive experience representing employees and management
Joseph and other California Employment Law Specialists are ready to help you
Customer: replied 11 months ago.
ok great thanks. Will do! I'll send it over when I get it done.. Thanks!
Customer: replied 11 months ago.

the following is a settlement agreement from rocket laywer.. I put in my info etc.. not sure what the end parts are about the lawyers? what do you think? also it had a confidential part.. but not "non disclosure" part. Every sample "non disclosure clause" I found mentioned not telling business secrets etc..( not sure that's relevant?) any feed back will be appreciated! ( its all jumbled together for some reason? )


 


 


Settlement and Release Agreement This Settlement and Release Agreement ("Agreement") is entered into on August 15, 2013 by and between Astrid Matheis, hereinafter ("Complainant"), 711 Fernandez Juncos San Juan, PR 00907, and The Palace Hostel ("defendent") 666 calle suau San Juan PR 00907, hereinafter of _________________, san juan, ________________ 00907.. This Agreement is effective upon full execution.


 


Recitals


A. Defendant denies and continues to deny in every particular the claims of Complainant in connection with the action described above. B. The parties desire to bring the action described above to a conclusion, and to avoid the further costs and expenses incident to its prosecution and defense. The making of this Agreement shall not be deemed an admission of any liability or wrongdoing whatsoever on the part of Complainant or Defendant.


 


Therefore, the parties agree as follows:


 


AGREEMENT Payments Defendant shall pay to Complainant $565.50 within 10 days of receipt by Defendant's counsel of this Agreement signed by Complainant, by way of "payroll" all of which shall be deposited By Direct Deposit to Complainant's account. The payment shall be deemed to include and settle all claims in connection with this matter including attorney fees, alleged debts and statutory penalties. Complainant shall execute the necessary documents and take all steps necessary to dismiss with prejudice the action described above.


 


Release


Complainant, on behalf of himself and his heirs, hereby releases and forever discharges as applicable Defendant and Defendant's parents, subsidiaries, franchisors, franchisees, and affiliated companies, and each of their former and present agents, directors, officers, employees, attorneys, and insurers, as well as their heirs and assigns (collectively "Releasees"), from any and all claims of any nature whatsoever, whether known or unknown and whether before a court or an arbitrator (hereinafter called "claims") that Complainant has and may hereafter have against Releasees because of any alleged acts or omissions whatsoever from the beginning of time to the date of the execution of this Agreement. The "claims" released under this Agreement include but are not limited to, any and all claims between Complainant and Defendant. Any other statutory or non-statutory tort or contractual claim; Any claim of a violation of any federal, state, municipal, or local statute, ordinance, or regulation pertaining to the cause of action. Complainant understands that a general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.


 


Confidentiality


 


The parties agree all facts and circumstances surrounding the dispute resolved by this Agreement and the existence, terms, conditions, and negotiation of this Agreement shall be kept strictly confidential.Any disclosure in violation of this section shall be deemed a material breach of this Agreement.


 


Arbitration


 


Any dispute arising out of an alleged breach of this Agreement, specifically including the confidentiality provision mentioned above, shall be settled by binding arbitration before the judicial arbitration and mediation services, the American Arbitration Association, or a similar arbitration service selected by the parties. The decision of the arbitrator shall be binding and conclusive. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.


 


Litigation costs and Attorney Fees


 


Complainant acknowledges that payment to him of the amount set forth in the paragraph title Payments above is for costs and full settlement of all claims released herein. The parties shall each bear all other costs and expenses, including litigation costs and attorneys fees that they have and will incur up to and in the execution and administration of this Agreement. Representations and warranties Complainant represents and warrants that there has been no assignment or transfer of any interest in the claims that he may have against Releasees, and Complainant agrees to indemnify and hold Releasees harmless from any liability, claims, demands, damages, costs, expenses, and attorneys- fees incurred by Releasees as a result of any asserted interest in the claims that he may now have or have had at any time against Releasees if such interest is acquired by assignment, transfer, or otherwise. Complainant represents and warrants that, except for the action described in paragraph a above, and his pending workers' compensation claim, he has not filed or instituted any claim before any court, administrative agency, arbitrator, or other tribunal against Releasees. Complainant further covenants that he shall not institute or maintain any other claim against Releasees arising from any facts occurring prior to the execution of this Agreement. Complainant agrees that he shall neither apply for, nor accept, employment with any of Releasees in the future. Complainant agrees that if he obtains such employment, this Agreement shall constitute good and just cause, as a matter of law, for termination of such employment. Complainant also agrees that if he submits an application for employment with Releasees, this Agreement shall constitute good and just cause, as a matter of law, for rejection of such application. The parties agree that in the event of any dispute or proceeding concerning this Agreement, its validity, interpretation, enforcement, or breach, the prevailing party shall recover reasonable attorneys- fees and costs in connection with any such dispute.


 


Governing Law


 


The parties agree that _________________ law shall govern the construction, interpretation, and enforcement of this Agreement.


 


Severability


 


The parties agree that if any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction or an arbitrator to be invalid, void, or unenforceable, the remaining terms and provisions of this Agreement shall remain in full force and effect, and shall in no way be affected, impaired, or invalidated.


 


Entire Agreement


 


The parties agree that this Agreement contains the entire Agreement of the parties hereto, and supersedes all other Agreements and understandings, whether written or oral, covering the subject matter hereof. The parties warrant that there are no representations, Agreements, arrangements, or understandings, oral or written, between them relating to the subject matter contained in this Agreement which are not fully expressed herein.


 


Amendments or Modifications


 


The parties agree that any amendments or modifications to this Agreement shall be deemed null and void unless such amendments and modifications are in writing and signed by Complainant and by the president of Defendant.


COMPLAINANT _____________________________________________ ________________________ Astrid Matheius Date


 


 


I am an attorney licensed to practice law in this state and I hereby represent and declare: 1) I have fully explained this Settlement and Release Agreement to Defendant, who in turn acknowledged to me an understanding of said Settlement and Release Agreement and the legal effect thereof and 2) the signature of the Defendant on this Settlement and Release Agreement was personally made by him/her. _____________________________________________ ______________________________ _________________ Date


 


DEFENDANT _____________________________________________ ______________________________ The Palace Hostel Date


 


 


I am an attorney licensed to practice law in this state and I hereby represent and declare: 1) I have fully explained this Settlement and Release Agreement to Defendant, who in turn acknowledged to me an understanding of said Settlement and Release Agreement and the legal effect thereof and 2) the signature of the Defendant on this Settlement and Release Agreement was personally made by him/her.


 


_____________________________________________ ______________________________ _________________ Date

Expert:  Joseph replied 11 months ago.
Hello Jeff,

That looks like a good and enforceable agreement that would protect you against disclosure of the terms of the settlement to anyone else.

The confidentiality clause is sufficient and you need not have a non-disclosure clause in addition to a confidentiality clause.

You are correct that trade secrets are not an issue at play here, so it would be unnecessary to include any clause regarding them.

I would edit the agreement to delete the references to attorneys and counsel. You can just delete the clauses at the end (along with the signature's) and change any reference to plaintiff's or defendant's counsel to just plaintiff and defendant.

Hope this helps.

As always, let me know if you have any follow up or clarifying questions.

Thanks and best of luck!
Customer: replied 11 months ago.
ok great I assume it has enough in there regarding the business or I not being held liable for anything after this document is signed? All that good stuff?
Expert:  Joseph replied 11 months ago.
Yes, it completely releases you from any liability regarding this claim or any other claim that the plaintiff has or may have against you and the business.
Joseph, Lawyer
Satisfied Customers: 4872
Experience: Extensive experience representing employees and management
Joseph and other California Employment Law Specialists are ready to help you
Customer: replied 11 months ago.
The top paragraph that says hereinafter then a blank etc.. What goes there?
Expert:  Joseph replied 11 months ago.
That's where you would have put 'Defendant,' but you covered that earlier. You can just delete the sentence that begins with 'hereinafter.'

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