Employment Contract Law

Answer:

While the vast majority of employees in California don’t have contracts, there are some employees in California that actually do have contracts. Some of those contracts are for specific time periods: one year, or for a specific job. The question comes up as to if they can terminate that contract. It really is a fact-intensive question about reading the contract and trying to figure out whether or not the employer could have you stop working, and whether or not that has an impact on whether or not they have to pay you out for the rest of the contract or for some specific period of time in the future. Sometimes, the contract have just cause provisions that say if they terminate you for just cause, they can cancel the contract. What’s clear in California is that, regardless of whether or not you have an employment contract or you’re considered at-will, all employees, both contract employees and at-will employees, are protected under California law from wrongful termination, unlawful harassment, and discrimination. If you have a contract or you’re an at-will employee, it’s important for you to understand what your rights are. There’s a time in which, at the end of your employment, your supervisor or HR wants you to sign another agreement called a separation agreement, in which they’re going to offer you money. Sometimes it’s two weeks, sometimes it’s a month, and sometimes it’s more. Understand that, if they’re doing that, they’re not just giving you money— they want you to release your claims. In fact, if you sign that agreement and you take that money, you very well could be releasing the company for any and all claims. Those claims could include wage claims for them improperly paying you while you worked there and could also include a wrongful termination. They want you to sign off on your claims so that you can never sue them again. If you’re being presented with an agreement at the end of your employment, it’s important for you to understand what rights you have and what rights you may be giving up. If you sign a contract at the beginning of your employment, please understand that doesn’t prevent you from seeking legal remedies outside of those contracts. I encourage you to talk to a law firm about your rights. If I can be of assistance, please feel free to give the office a call and we can discuss those matters.