Contract Employment Law
Your employment contract will set forth the terms of your employment with your employer. Generally, employment contracts are negotiable and you should always thoroughly review your employment contract prior to signing the agreement. The general terms of employment contracts state how much an employee is to be compensated, any applicable benefits, what kind of job security the employee can expect and how the employer may go about terminating the relationship.
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The Agreement
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Employment contracts can be verbal or written and they generally cover very standard information related to workplace responsibilities, job titles, compensation, health benefits, other benefits, length of employment, grounds for termination, choice of law clauses, severance pay and confidentiality.
Laws
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Employment contracts are generally governed by applicable principles of contract law and contract construction in your jurisdiction. Every jurisdiction will have different requirements regarding how a contract must be constructed and what language must be used to make the contract valid. Statutory law and common law within your jurisdiction will dictate what may be in your employment contract. For example, some jurisdictions have very specific requirements related to non-compete clauses and specific language must be used to ensure that the court does not deem the non-compete clause overly broad.
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Federal And State Laws
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Employee contracts may not force an employee to forgo rights established under federal and state law. The contract may not violate standard employment and labor laws, and it cannot require you to give up rights such as overtime pay and minimum wage, which are mandated by the Fair Labor and Standards Act. However, an employment contract may require you to waive certain rights, which are not mentioned in employment and labor laws such as non-compete clauses, non-disclosure clauses and severance agreements.
Independent Contractors
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A separate body of law governs employees who are deemed to be independent contractors. If you are an independent contractor your employer may be able to avoid giving you some of the normal benefits that other employees are entitled to. If a court must determine whether you are an independent contractor, it will look to a list of common law factors, including whether you do work on the employer's premises, who sets your work hours, who provides the tools or facilities you use, the nature of the employment relationship, and who controls where, when and how your services are performed.
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References
- LegalMatch: Employment Contract Law
- Bizhelp24: Employment Contract -- Changing & Terminating a Contract
- EmployeeIssues.com: About Employment Contracts and Agreements
- QuickMBA: Employment Law and Duties to One's Former Employe
- FindLaw: Twenty Factor Checklist to Determine Independent Contractor vs. Employee Status
- Cohen and Cambroni; Changes in Law Governing Employment Contracts; Morgan R. Luddeke; December 2010
