Additional-Consideration Rule Law and Legal Definition

Additional consideration rule is a principle of employment law. According to this rule, an employee at will, who does not have a written contract, can maintain a breach-of-contract claim against the employer for not fulfilling its agreement, if the employee undertakes substantial hardship in addition to the normal job duties.

Many U.S. states have adopted the additional consideration rule whereby additional consideration beyond the traditional services for pay agreement can create a just cause termination contract. Courts which have applied the additional consideration doctrine have found that the following do not constitute additional consideration: (1) foregoing other job opportunities, moving when transfers were ordered, and deferred compensation; (2) giving up the opportunity to take other employment; (3) relinquishing rights to inventions; and (4) relinquishing rights to inventions and an agreement not to divulge employer's secrets. [Stedillie v. American Colloid Co., 967 F.2d 274, 278 (8th Cir. S.D. 1992)]