Expert Offers Critical Contract Points for AI Workers' Agreements


NEW YORK, June 19, 2023 - A noted expert in employee workplace negotiating sees a "gold-rush-like frenzy" to hire AI expertise, and offers ten points to carefully address in AI workplace contracts.

Noted author, attorney and blogger, Alan L. Sklover, has just posted an insightful article on his blogsite, SkloverWorkingWisdom.com entitled "AI Professionals: Special Contract Concerns," in which he reports that, due to a torrential flow of investment capital into both AI start-up firms and mega-cap tech firms, there is now an intense demand - but limited supply - of AI experience and expertise.

With over 40 years experience representing employees in workplace negotiations, Sklover explains that employers are eager to represent themselves as "Early Entry Participants" in the burgeoning AI field, and, so, at this moment leverage is great for those with AI expertise and experience.

Here are six of the most important contract provisions for those with AI expertise:

Role, Responsibilities and Resources: Without these three "R's" clearly set forth, the employee has no control over the nature of the position, that is, what he or she will do all day, an important topic to creative minds.
Clarity as to Performance-Based Bonuses: "Discretionary" are, essentially, "imaginary," that is, they can end up being zero. Vague definitions, near-impossible calculations, and hidden or disguised "eligibility" requirements are costly.
Minimum Guaranteed Compensation: An effective approach to compensation for AI experts is a "minimum guaranteed compensation," which takes and "all-in approach," approach, outside the employer's discretion and differing interpretations of an agreement's words.
Rights in and to so-Called "Prior Works" and "Company Works" (or their equivalent): It is widely anticipated that AI will be put to uses not imaginable at this time. New applications, continual developments and wider uses will be identified, created and . . . owned by someone. Who gets the rights, credits and royalties is perhaps the greatest concern in any AI employment agreement.
Sale-of-Business Bonuses: What happens to the AI employee and her or his interests and rights should an AI-Related Business Unit, its IP assets, licenses or equity, are sold? How can the AI expert avoid being taken advantage of? This is another critical issue.
Differing Consequences of Six Different Departures: What happens in event of Termination without Cause, Termination for Cause, Resignation without Good Reason, Resignation with Good Reason, Disability or Death, are of great significance to the Employee and her/his family.
This list is far from all-inclusive, as each employee, employer, business and circumstances are unique.

In his article Alan Sklover explains that "It's wonderful to have negotiating leverage, but it's even better to know how to make effective use of that leverage." While those with AI Expertise have significant negotiating leverage, few have any negotiation experience.

Over 40 years, Alan L. Sklover has created a new paradigm in Employment Law, an approach based in self-education and, to the desired degree, self-representation. His SkloverWorkingWisdom.com website contains the ins, outs, insights and wisdom every employee needs, in 64 separate sections together containing over 1.4 million words and 16 videos. Over 4 million visitors to date. And its "private library" . . . is free.

For a modest fee, sample memos and letters, career coaching and counseling – are also available at SkloverWorkingWisdom.com. Subscribe for free. Telephone or Zoom Consultations, and negotiation representation are available, as well.

For Further Information: Alan L. Sklover, Attorney, Author and Blogger, (212) 757-5000, 360678@email4pr.com

SOURCE Alan L. Sklover