Credit: Maksym Dykha/Adobe Stock Litigating 'Cause' Under New York Employment Contracts
Sometimes the "cause" standard in employment contracts specifies particular misconduct and a minimum level of culpability, such as "gross negligence" or "recklessness." Sometimes it's undefined. Either way, these provisions leave open a critical issue: the relevance of the employer's honesty, good faith and evenhandedness in applying the "cause" standard. Surprisingly, the New York case law on this point is a mixed bag.
January 04, 2024 at 10:00 AM
8 minute read
Contracts
Employment contracts typically guarantee employment for a definite period of a time absent "cause," "good cause," "just cause," or the like. Sometimes the "cause" standard specifies particular misconduct and a minimum level of culpability, such as "gross negligence" or "recklessness." Sometimes the "cause" standard is left undefined. Either way, these provisions leave open a critical issue: the relevance, if any, of the employer's honesty, good faith and evenhandedness in applying the "cause" standard.
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