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Understanding Employment Contracts


In California, most employment agreements are “at will,” which means employees or employers may nullify the agreement at any time, with or without notice or reason.

When employees move to a higher level and become executives, however, they often sign an employment contract. According to job-search site, Monster, a contract has beginning and ending dates and contains specific provisions for termination.

Why Sign a Contract?

Contracts can be beneficial for employees and employers alike because they help establish job security and create penalties for employees who resign before the allotted time. They also document agreements between the employer and their employee about payment, benefits, bonuses, and commission.

Make sure your contracts and compensation agreements are as clear as possible. If there’s anything you don’t understand, you may want to hire a lawyer and renegotiate the contract.

Avoiding Pitfalls

If you have a “side hustle,” or other employment opportunities you wish to pursue, watch out for an “exclusivity clause” in your contract. Some employers limit their employees to their company alone, and others want to ensure their employees are not working with competitors or creating conflicts of interest within the company. With a “non-compete” clause, the contract may also limit you from working for competitors for a set amount of time after your contract expires.

Make sure you understand the consequences of breaking your contract. In some cases, employees who leave before the agreement is up risk losing vacation days and other benefits.

At the end of the day, if you sign a contract, you should uphold it.

The same can also be said for your employer.

Holding an Employer Accountable

If your employer violates the terms of your contract, you may want to seek legal remedies. If your employer improperly terminated you, failed to compensate you according to the contract, or denied agreed-upon benefits, you may be eligible for damages.

At K2 Employment Law Group, we have experience litigating breach of contract on both sides of the equation and focus our current representation towards employees. Don’t let your employer toss your contract aside. Contact us at (800) 590-7674 instead.

Our dedicated attorneys will fight for your rights in the workplace. Get started today with a free consultation.