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Termination of Employment - Performance and Economic

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The employment agreement may also address other

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circumstances beyond for cause

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and without cause that allow either party

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to actually terminate the relationship.

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For example, there could be substantial changes in the

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business of the employer where the employer wants

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to have the ability to actually terminate the,

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uh, contractual relationship.

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This could be because they've lost

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a contract with a hospital.

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It could be that they've lost

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or been kicked out of network

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with a particular insurance company, so it's no longer

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economically feasible to continue

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the employment relationship.

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There are also quality

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or performance benchmarks that may be

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established in the employment agreement that have

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to be satisfied in order for the relationship to continue.

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We wanna be very careful about these quality

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or performance benchmarks to make sure that A,

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that they're understood in they're specified in detail

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and not subjective in nature.

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And B, we wanna make sure that there are benchmarks

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that if they're gonna remain in the contract,

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that they can be satisfied

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that they're not set at a performance level that exceeds

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or is not consistent

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with the relationship that's being created.

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So, for example, if you've got a part-time relationship,

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you know the quality and the performance benchmarks need

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to be reflective of a part-time relationship so

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that you're not subject to standards that can't be met

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as a part-time employee.

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The other thing you need to consider is if you're being

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terminated for these circumstances, whether

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or not, you know, there should be penalties

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that apply to the employer.

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It's not, you know, necessarily the employee's fault,

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that if they're being terminated,

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they've relocated across the country.

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For example, you know that the employer wants out

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because they've lost a contract

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or they've no longer determined

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that their relationship is economically feasible.

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It's very fair for the employee to request

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liquidated damages in that circumstance.

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The employer may not be willing to agree

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to those liquidated damages,

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but it may be something under the unique circumstances of

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that particular employment relationship

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where liquidated damages should apply.

Report

Faculty

David M Yousem, MD, MBA

Professor of Radiology, Vice Chairman and Associate Dean

Johns Hopkins University

Mahla Radmard, MD

Postdoctoral Research Fellow

Johns Hopkins University School of Medicine

Bartholomew Dalton Esq.,

Senior Partner

Dalton & Associates

Judd A. Harwood, JD

Partner

Bradley Arant Boult Cummings LLP