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Former CEO looks to litigate over an employment contract

Every employee has rights at their place of work. There are mandated governmental rights that apply to everyone that has a job. For instance, the Equal Employment Opportunity Commission, commonly known as EEOC, enforces federal laws with respect to discrimination in the workplace. Basically, employers cannot discriminate against individuals who are either employed or seeking employment on the basis of race, religion, sexual orientation, and the like. Federal laws such as these are in place to support claims of workplace discrimination, where appropriate.

The former CEO of American Apparel is looking to sue his former company for breach of his employment contract, among other things. Dov Charney was the main man at American Apparel prior to being fired for conduct unbecoming a CEO. More specifically, Charney was fired based on a number of allegations, including sexual harassment and misappropriation of company funds. Charney, however, plans on initiating a number of suits, namely, defamation and breach of contract. He is seeking a substantial amount of damages in his suit.

In general, contractual obligations have to be followed and when it comes to employment contracts, this is all the more true. Upon hiring an employee, the employer makes certain assurances and promises, including, but not limited to, a certain amount of compensation, leave accrual, health benefits and the like. Hence, throughout the life of the employer-employee relationship, there are certain expectations for each side and when these are not fulfilled, lawsuits may ensue.

Employment litigation exists where there are disputes within the employer-employee relationship. Sometimes, however, these disputes can be resolved outside the courtroom in a less formal setting.

Source: The Guardian, "Former American Apparel CEO seeks $40m in damages for contract breaches," March 27, 2015

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