Employment Contracts

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Contract Employment Lawyer in Los Angeles

Employers issue employment contracts to employees outlining the terms and conditions of employment. These contracts are typically in writing and include the hire date, job title and description, duration of employment (if applicable), compensation, and any benefits. Whether you are facing a breach of contract, have been unlawfully terminated, or need an agreement reviewed before signing, the employment contract lawyers at Kohanchi Law are ready to help.

What is the Difference Between a Contract and An Offer Letter?

Not to be confused with an offer letter, an employment contract is legally binding, and there are consequences if either party breaches it. An offer letter generally does not guarantee a fixed salary or employment.

What is At-Will Employment?

In California, the relationship between employer and employee is generally considered “At-will”. Under California’s Labor Code, the presumption is that either the employer or the employee may terminate the employment relationship, with or without cause or prior notice, at any time for any lawful reason.

The term “cause” and how it is defined under California law as “a fair and honest cause or reason, regulated by good faith on the part of the employer” is significant. An employer’s decision to discharge or terminate an employee relies heavily on its ability to prove to a court or jury that it terminated an employee in good faith, based on a fair and honest reason, and that every termination it made was not trivial, arbitrary, inconsistent with usual practices, or related to the needs and goals of its business.

There are exceptions to at-will employment, including:

  • Employees in the public sector whose rights are protected by civil services laws and/or by a “memorandum of understanding” between their union and the agency in charge of addressing disciplinary and termination procedures.
  • Employees who are represented by unions, and the unions that represent them, have signed a written legal contract, also known as a collective bargaining agreement (CBA), that includes a “just cause” standard for termination.
  • Employees whose contracts require a “good and/or just cause” for termination.
  • Employees hired by employers who have mentioned anything or engaged in any activities that remove any indications of “at-will” employment.
 
While there are several exceptions to at-will employment, termination based on discrimination and/or retaliation is unlawful. Employment contracts are a means to modify the at-will presumption, limiting terminations to just cause.
 

Key Things to Review

  • Job Description: Are the expectations clear or vague? Companies tend to promote vague job descriptions, leaving ample space to modify their positions to cater to their needs. As a job seeker, it is imperative that you request clarification on anything, leaving an employer with minimal grounds to claim you are not fulfilling your job.
  • Term: If there is a term, study it and understand it in its entirety. Does it possess grounds for termination in advance? Are there opportunities for contract extensions?
  • Restrictive Covenants: Pay close attention to non-compete agreements, which will hinder your ability to sustain like-work after termination. This specifically pertains to individuals looking to venture out and enter the industry independently. If you must settle on a non-compete agreement, it is imperative to secure some form of compensation during the “dark period” and to avoid a lengthy non-compete clause.
  • Compensation: Your compensation is more than your wages. Consider bonuses, incentives, commissions, healthcare benefits, retirement benefits, and more.

Signs You May Have an Employment Contract Case

ou may have grounds for a legal case if you have experienced any of the following issues related to your employment contract or employment relationship:

  • Breach of Contract: Your employer failed to uphold one or more legally binding terms of your written or implied employment contract, such as unpaid compensation, denied benefits, or wrongful termination against a “just cause” provision.
  • Wrongful Termination: You were terminated despite a contract that limits termination to “good and/or just cause,” and the employer cannot prove they acted in good faith based on a fair and honest reason.
  • Unlawful Termination: Your termination was based on unlawful discrimination, retaliation, or whistleblowing, regardless of whether you are an at-will employee or protected by a contract.
  • Disputes over Restrictive Covenants: You are facing a dispute or threat of legal action over a non-compete, non-solicitation, or other restrictive covenant that may be unenforceable or overly broad under California law.
  • Contract Review and Negotiation: You need a professional review of a proposed employment contract, severance agreement, or non-compete clause to protect your rights before signing.

Our Process: What to Expect

Navigating employment contract law can be complex. Our process is designed to be clear, supportive, and focused on achieving the best outcome for you.

  1. Initial Consultation: We begin with a confidential discussion to understand your situation, review your employment contract or related documents, and assess the strength of your case.
  2. Fact-Gathering and Legal Analysis: We thoroughly investigate the details of your claim, gather all relevant evidence, and provide you with a clear legal analysis of your rights and options under California law.
  3. Strategy Development: Based on our analysis, we develop a strategic plan that may include negotiation with your current or former employer, mediation, or, if necessary, litigation.

Action and Representation: We take decisive action on your behalf, providing experienced representation in all negotiations or court proceedings to pursue the compensation or resolution you deserve.

Employment Contract FAQs

Q: What is the difference between an offer letter and an employment contract?

A: An offer letter typically outlines the basic terms of employment but is generally not legally binding and does not guarantee a fixed salary or duration of employment. An employment contract is a legally binding agreement that clearly outlines the terms and conditions, and a breach can lead to legal consequences.

Q: What does “At-will” employment mean in California?

A: Under California’s Labor Code, “At-will” means that an employer can generally terminate an employee (and an employee can quit) at any time, with or without cause or prior notice, for any lawful reason.

Q: Can a written employment contract override “At-will” employment?

A: Yes. An employment contract is a means to modify the at-will presumption. Contracts that require a “good and/or just cause” for termination limit an employer’s ability to terminate the relationship.

Q: Are non-compete agreements enforceable in California?

A: Generally, non-compete agreements that restrict an individual’s ability to work in the same industry after termination are heavily scrutinized and often unenforceable in California, with a few narrow exceptions. You should always have any restrictive covenant reviewed by a lawyer.

Seek Help from an Employment Contract Lawyer

Don’t navigate complex employment contract issues alone. Whether you are facing a breach of contract, have been unlawfully terminated, or need an agreement reviewed before signing, the employment contract lawyers at Kohanchi Law are ready to help.

Contact us and Schedule a Free Consultation. We are prepared to assist you with breaches of contract, enforceability of non-competition agreements, and protecting your rights in the workplace.

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