What Are Employment Agreements?
California is an "at-will" state, which means that employment relationships generally can be terminated at any time, for any lawful reason. But despite this at-will presumption, employers often enter into agreements with their employees to define parameters of the employment relationship. These agreements can be either oral or written, and they can govern a multitude of subjects. The most common kinds of employment-related agreements are:
- General employment contracts or offer letters, which establish the basics of the employment relationship (e.g., job title, duties, compensation, etc.);
- Arbitration agreements, by which employees relinquish their rights to have employment disputes adjudicated in court; and
- Non-disclosure and/or non-compete agreements, which are often illegal, except in very limited circumstances.
Employees can sometimes negotiate the terms of their employment contracts, depending on various factors. Employers, likewise, may decide that they do not even want to use written contracts for certain employees, especially if doing so would otherwise give the employees ammunition for lawsuits. Some frequently-used contract provisions also may not even be legal, such as anything that prohibits employees from working for competitors if their employment terminates (so-called "non-compete" provisions). Employers may subject themselves to liability simply by asking employees to agree to unlawful contracts.
Example:
An employer asks a prospective employee to sign a contract stating that the employee will not work for any of the employer's competitors for at least a year after his/her employment terminates. The contract violates California law, since it improperly infringes on the employee's ability to work.
Free Consultation with San Mateo County Employment Lawyer
I draft, review and negotiate employment agreements for both employers and employees alike. Call 650-557-4746 (1-866-290-0424 toll-free) or fill out the contact form on this site to talk to me about your case. My employment law office is located in San Bruno in San Mateo County, just south of San Francisco.
