Breach of Employment Contracts
Not every job in California is at-will. In some cases, employees and employers enter into written or implied employment contracts.
When one party fails to uphold their end of that agreement, it may constitute a breach of contract under California law.
What Is an Employment Contract?
An employment contract is a binding agreement that outlines the terms and conditions of employment. These can be:
- Written contracts: Signed agreements that define duties, compensation, length of employment, termination clauses, and benefits.
- Oral contracts: Verbal promises or agreements, though harder to prove, may still be legally enforceable.
- Implied contracts: Based on employer conduct, policies, or statements suggesting continued employment unless certain conditions are met.
Case Results
Common Examples of Breach
A breach of contract occurs when one party fails to perform as agreed. Common examples include:
the contract period ends without valid cause
or bonuses
or benefits contrary to the agreement
or non-compete clauses (if enforceable)
At-Will vs. Contract Employment
Most California employees are considered “at-will,” meaning they can be terminated at any time, for any legal reason. However, an employment contract can override at-will status and create additional protections or obligations. Courts will consider the full context—written terms, verbal assurances, and employer practices—when determining whether a contract exists.
Legal Remedies for Breach
If a breach is proven, the harmed party may be entitled to: