I have some experience with rich people who think they can just put whatever they want in contracts and then stare at you until you sign it because you are physically dependent on eating food every day.
Turns out they're right, they can put whatever they want in a contract. And again, they are correct that their wage slaves will 99.99% of the time sign whatever paper he pushes in front of them while saying "as a condition of your continued employment, [...]".
But also it turns out that just because you signed something doesn't mean that's it. My friends (all of us young twenty-something software engineers much more familiar with transaction isolation semantics than with contract law) consulted with an attorney.
The TLDR is that:
- nothing in contract law is in perpetuity
- there MUST be consideration for each side (where "consideration" means getting something. something real. like USD. "continued employment" is not consideration.)
- if nothing is perpetual, then how long can it last supposing both sides do get ongoing consideration from it? the answer is, the judge will figure it out.
- and when it comes to employers and employees, the employee had damn well better be getting a good deal out of it, especially if you are trying to prevent the employee (or ex-employee) from working.
A common pattern ended up emerging: our employer would put something perpetual in the contract, and offer no consideration. Our attorney would tell us this isn't even a valid contract and not to worry about it. Employer would offer an employee some nominal amount of USD in severance and put something in perpetuity into the contract. Our attorney tells us the judge would likely use "blue ink rule" to add in "for a period of one year", or, it would be prorated based on the amount of money they were given relative to their former salary.
> if nothing is perpetual, then how long can it last supposing both sides do get ongoing consideration from it? the answer is, the judge will figure it out.
Isn't that the reason more competent lawyers put in the royal lives[1] clause? It specifies the contract is valid until 21 years after the death of the last currently-living royal descendant; I believe the youngest one is currently 1 year old, and they all have good healthcare, so it's almost certainly will be beyond the lifetime of any currently-employed persons.
I know little about law, but isn't this completely ludicrous? Assuming you know a bit more (or someone else here does), I have a few questions:
Would any non-corrupt judge consider this is done in bad fait?
How is this difference if we use a great ancient sea turtles—or some other long-lived organism—instead of the current royal family baby? Like, I guess my point is anything that would likely outlive the employee basically?
It's a standard legal thing to accommodate a rule that you can't write a perpetual contract, it has to have a term delimited by the life of someone alive plus some limited period.
A case where it obviously makes sense is something like a covenant between two companies; whose life would be relevant there, if both parties want the contract to last a long time and have to pick one? The CEOs? Employees? Shareholders? You could easily have a situation where the company gets sold and they all leave, but the contract should still be relevant, and now it depends on the lives of people who are totally unconnected to the parties. Just makes things difficult. Using a monarch and his currently living descendants is easy.
I'm not sure how relevant it is in a more employer employee context. But it's a formalism to create a very long contract that's easy to track, not a secret trick to create a longer contract than you're normally allowed to. An employer asking an employee to agree to it would have no qualms asking instead for it to last the employee's life, and if the employee's willing to sign one then the other doesn't seem that much more exploitative.
> stare at you until you sign it because you are physically dependent on eating food every day
Even lowest level fast food workers can choose a different employer. An engineer working at OpenAI certainly has a lot of opportunities to choose from. Even when I only had three years in the industry, mid at best, I asked to change the contract I was presented with because non-compete was too restrictive — and they did it. The caliber of talent that OpenAI is attracting (or hopes to attract) can certainly do this too.
> Even lowest level fast food workers can choose a different employer.
Only thanks to a recent ruling by the FTC that non-competes are valid. in the most egregious uses, bartenders and servers were prohibited from finding another job in the same industry for two years.
my argument is that some people don't, not without going homeless and living out of their car and eating off of EBT (in the US). if the choice was to sign a shitty non-compete, or get evicted, I find it hard to fault someone for signing such a contract. it's not a logic problem with your reasoning but that the reasoning starts from an (imo) unsound place.
I am typically not willing to bet I can get back under health insurance for my family within the next 0-4 weeks. And paying for COBRA on a family plan is basically like going from earning $X/mo to drawing $-X/mo.
The perversely capitalistic healthcare system in the US is perhaps the number one reason why US employers have so much more power over their employees than their European counterparts.
This is all basically true, but the problem is that retaining an attorney to confidently represent you for such negotiation is proposition with $10k table stakes (probably $15k+ these days with Trumpflation), and much more if the company sticks to their guns and doesn't settle (which is much more likely when the company is holding the cards and you have to go on the offensive). The cost isn't necessarily outright prohibitive in the context of surveillance industry compensation, but is still a chunk of change and likely to give most people pause when the alternative is to just go with the flow and move on.
Personally I'd say there needs to be a general restriction against including blatantly unenforceable terms in a contract document, especially unilateral "terms". The drafter is essentially pushing incorrect legal advice.
Turns out they're right, they can put whatever they want in a contract. And again, they are correct that their wage slaves will 99.99% of the time sign whatever paper he pushes in front of them while saying "as a condition of your continued employment, [...]".
But also it turns out that just because you signed something doesn't mean that's it. My friends (all of us young twenty-something software engineers much more familiar with transaction isolation semantics than with contract law) consulted with an attorney.
The TLDR is that:
- nothing in contract law is in perpetuity
- there MUST be consideration for each side (where "consideration" means getting something. something real. like USD. "continued employment" is not consideration.)
- if nothing is perpetual, then how long can it last supposing both sides do get ongoing consideration from it? the answer is, the judge will figure it out.
- and when it comes to employers and employees, the employee had damn well better be getting a good deal out of it, especially if you are trying to prevent the employee (or ex-employee) from working.
A common pattern ended up emerging: our employer would put something perpetual in the contract, and offer no consideration. Our attorney would tell us this isn't even a valid contract and not to worry about it. Employer would offer an employee some nominal amount of USD in severance and put something in perpetuity into the contract. Our attorney tells us the judge would likely use "blue ink rule" to add in "for a period of one year", or, it would be prorated based on the amount of money they were given relative to their former salary.
(I don't work there anymore, naturally).