Business Client Gains Flexibility while Saving Costs by Integrating Relationship Contracts
SITUATION: A vibrant financial service office had engaged a competing law firm to write a form employment contract and post-employment restrictive covenant. Unsatisfied with the result, the client engaged Lawrence Kamin to review and rewrite the documents. During initial consultation, our attorneys learned that, in addition to the relationships governed by the employment contract, the client had multiple business entities and a complex spectrum of independent contractor and other compensation-sharing relationships all governed separately by distinct agreements. Individuals often switched between an employment, independent contractor, or compensation-sharing role and, in many cases, held multiple positions simultaneously with different clients of the office.
STRATEGY: Lawrence Kamin recommended a simultaneous review and integration of all of these contracts into a single “Affiliation Agreement.” Our firm effectively prepared an agreement that was simple to read and flexible enough to cover the affiliate’s separate or simultaneous compensation and obligations in any role as employee, independent contractor, or non-contractor under a compensation-sharing relationship.
RESULT: After implementing the new Affiliation Agreement, the client reported that the approach requires less internal recordkeeping and reduced confusion among affiliates as to which agreements and responsibilities apply to distinct portions of an affiliate’s relationship. Importantly, the increased clarity of the single agreement also substantially lowered the client’s risk of litigation. Notably, Lawrence Kamin’s fees for preparing the Affiliation Agreement were substantially lower than the competing law firm’s fees to write the original employment agreement that the client found unsatisfactory.