One of the most important tools that employers have at their disposal is a strong legal agreement with employees. Employment contracts can provide protection for both parties, outlining expectations and requirements for all involved. When there is a breach of contract, it could be grounds for legal action and an attempt to recover financial losses. One recent case involving Oregon State University serves as reminder as to why these types of contracts are crucial.
The university recently sued its former athletic director. OSU claims the former AD breached his contract when he left for a new employment opportunity at another school. The lawsuit states that Todd Stansbury, former AD, failed to comply with the terms of the buyout agreement he had with the university.
According to the school, the original employment contract stated that Mr. Stansbury would pay the school his base salary for the remaining years he had left in the contract if he chose to leave early. When he opted to leave the school in 2016, he owed the school just over $2,000,000. The school claims that he made his required payments until July of this year, then he stopped.
The lawsuit claims that Mr. Stansbury still owes Oregon State University approximately $1,500,000 as well as interest. The terms of employment contracts are important, especially when there are buyout clauses or the possibility of significant financial losses. When drafting, reviewing or considering the terms of these agreements, it can be helpful to have experienced guidance at every step of the process.