North State SHRM News & Legal Updates

Though sometimes overlooked given the abundance of federal and state statutory claims, employers must remember that their existing contractual obligations remain in place during the pandemic. As a review of the Fisher Phillips COVID-19 Employment Litigation Tracker demonstrates, employers must take care when imposing unilateral terminations or salary reductions against employees with written employment agreements or they could face a breach of contract lawsuit – even where the actions are a result of the financial exigencies created by COVID-19. Instead, employers should review any written employment agreements and confirm that the proposed action is permitted (or defensible) before doing so. A failure to consider existing contractual obligations could result in a claim for breach of contract.