Efficient And Effective Business Litigation

Employment disputes often involve contracts

On Behalf of | Nov 17, 2022 | Contract Disputes, Employment Disputes |

Employment issues that make the news usually involve discrimination or harassment claims. Others involve claims for unpaid or underpaid wages.

Of course, California employers should make sure that they have robust anti-discrimination and anti-harassment policies and should also take steps to prevent wage claims.

While they are at it, employers who have businesses in Orange County should also review the contracts they have with their employees carefully.

They may not grab headlines as often, but many times, disputes and even employment litigation happen because of what a contract says or does not say.

Agreements with managers and executives

For example, many private businesses in the area find it prudent to enter contracts with higher level managers and executives.

When things are going well, a contract gives both sides a good idea of what to expect out of the relationship.

However, especially when an employment relationship has soured, there can be disputes over whether an employer can fire the employee and for what reasons. There may also be disagreement about compensation.

A lot of these disputes will come down to what the contract says and the surrounding circumstances. A business’s leadership will need to understand how the language of the contract and the provisions of California law apply to the facts.

Non-competition agreements are not legal in California

Contract disputes may also arise when an employee leaves a business to pursue another opportunity.

Unlike most other states, in all cases, California law prohibits employers from requiring employees to sign agreements not to compete. Employees are free to take another position with whom they choose.

Orange County businesses may want to review their contracts carefully to make sure they are not unwittingly asking employees to sign an illegal non-competition agreement.

However, this does not mean that employers cannot take steps to protect trade secrets and other confidential information.

It is important to draft confidentiality and non-disclosure provisions correctly since California law places restrictions on them, even though the law does not prohibit them completely.

Even so, if a business suspects one of its employees has misappropriated confidential information, it will need to develop a legal strategy to protect its interests. They may even have to file a lawsuit.