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Employment contracts can be either implied or explicit. An individual may have signed an employment contract in new hire paperwork without realizing it was an employment contract. An implied employment contract does not necessarily require previous knowledge of the contract. Regardless of whether the contract is explicit or implied, the employment contracts do not forfeit employment rights that are mandated under state and Federal labor laws.
Employment contracts cannot force an employee to forgo their rights to overtime pay or minimum wages as set forth by the Federal Labor Standards Act (FLSA). It does not matter if this is implied or written into the employment contract. It is not a legal action for the employer to take. - While the contract does not dissolve rights from state and federal labor laws, it can enhance those rights specific to an individual's particular contract. This can include specific days that are paid as holiday, personal or sick time. The contract can include mileage and expense reimbursement as well as benefits that are not widely given to other employees. An individual employment contract can spell out wages, bonus structures and separate one employment status from another.
- An employment contract can ask an employee to waive rights not mandated under FLSA. This can include non-disclosure and non-compete agreements. If these agreements are offered at time of hire, the courts see the agreements as a part of the employment conditions. If these agreements are offered after an employee has been employed for any length of time, compensation of any type should be offered for the signing of the agreements. Informing the employee the compensation for signing is retaining their jobs does not typically hold up in court.
- Employers face enforceability problems if they do not give adequate time to the employee to sign the agreements or contracts. An employee should have time to review the contract and seek advice from an attorney.
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An employee has the right to negotiate contracts and agreements between them and the employer. An attorney can be brought into the process if the employee does not feel at ease doing the negotiation on their own. Employers have the right not to negotiate a standard contract if they choose.
Beware when negotiating if the employer refuses a counteroffer made, the original offer may not be available again. The employer may not be legally required to offer it a second time either.
Be careful when reading through the contract, understanding all the legalese that may be in the contract or agreement. If something is not understood, ask for clarification. Simply signing the agreement without full understanding may be cause for regret later.
