Chicago small business owners cannot afford employment disputes

When Chicago readers think of business contracts, mergers and acquisitions may come to mind. Such agreements are indeed a highly visible type of business contract, often making news because of the large amounts of money involved.

However, businesses do enter into other types of contracts. One example is real estate contracts. When a business acquires physical assets or simply rents office space, it will need to enter into contracts governing the terms of possession or occupancy. As a business grows, it may turn to subcontractor agreements as a way of managing its work streams.

Depending on the type of personnel involved, a business may hire employees or executives using employment contracts, independent contractor agreements, or executive compensation agreements. Such contracts often include non-compete clauses. Today's post provides a recent example of a dispute between the state of Illinois and municipal employees over the terms of their employment.

Illinois Gov. Pat Quinn's office recently announced that the state had reached a tentative agreement with the union representing local and state government employees. Although not all of the terms were released, the deal is expected to cover the next three years and include a pay increase for the state's approximately 35,000 workers.

Employment negotiations can quickly turn into contentious disputes. In the case of small business owners, however, there may not be enough reserves to withstand such claims. For that reason, small businesses often turn to an experienced small business contracts attorney to draft thorough employment contracts that will insulate a business from legal disputes down the road.

Source:, "State reaches contract deal with AFSCME," Feb. 28, 2013

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