What do News Anchors, Sports Figures, and Corporate Executives Have in Common? Employment Agreements and Risk-Avoidance Clauses.

Risk-Avoidance provisions in employee contracts are more common than you might think. Think of it as insurance on an investment. Employers pay huge sums to retain these “ultimate performers.” The employment contract is one way to try to ensure that your precious and irreplaceable commodity (i.e., the all-star employee), doesn’t voluntarily put your investment in harm’s way.

Waterfall Rafters

The activities subject to risk-avoidance provisions vary greatly. From driving motorcycles to skydiving, the sky’s the limit on what types of “dangerous” engagements can be prohibited.

The Human Capitalist has a short post on Why Professional Athletes Have Provisions in their Employee Contracts. We’ve posted about this topic before in the context of Philly’s own ex-newsreporter, Alycia Lane, and the morals clause in her employment agreement that permitted CBS to fire her after being making headlines herself one too many times.

Human Capitalist also posts a great YouTube video demonstrating just why sports figures should have “risk avoidance” provisions in their contracts.

For more on this topic, see our earlier post, Bad Boys, Bad Boys, Whatcha’ Gonna Do When They Work for You?, which discusses morals clauses in employment contracts.

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