EMPLOYMENT CONTRACTS
Most, though not all, employment relationships are pursuant to written contracts. Having a contract can eliminate confusion over the status of an employee, the terms of their relationship, and the employer’s policies.
An employment contract can define an employee as at-will, exempt or nonexempt or as an independent contractor. Terms may include:
- Salary
- Benefits
- Stock options
- Insurance
- Grounds for discharge
- Expense account
- Performance reviews
- Non-compete provisions
Laws Governing Employment Contracts
Employers are required to adhere to state and federal anti-discrimination laws. These include:
- Title VII of the Civil Rights Act of 1964
- Age Discrimination Act of 1975
- Americans with Disabilities Act
- Equal Pay Act
- Family and Medical Leave Act
These laws prohibit discrimination based on hiring, firing, promoting, demoting, harassment, pay and benefits and other activities.
Litigation
Many employment-related lawsuits or claims pertain to allegations of:
- Discrimination
- Discharge for retaliation
- Discrepancies in pay or benefits
- Hour and meals violations
- Overtime pay
- Sexual harassment
- Violation of noncompete agreements
- Intellectual property disputes
- Termination for unjust cause
Litigation Process
Depending on the nature of the contractual issue, a claimant may have to file a complaint first with the California Department of Labor Standards Enforcement (DLSE) or Labor Board. These complaints generally concern disputes over pay, hours or meals violations. To file a complaint you will need the following:
- W-2 or 1099
- Paycheck stubs
- Form 1-Labor board complaint
- Form 55-attachment for amounts owed for each pay period
- Form RC-1-claims for retaliatory dismissal allegation
You must file your complaint with the appropriate DLSE regional office or your complaint will be delayed.
Once filed, you will be required to attend a conference with the Labor Board with your employer and attorney where the allegations are discussed and the complaint finalized. A hearing or trial is scheduled within a few months or up to one year depending on the volume of complaints with the regional office and the nature of your complaint. The trial is similar to any other trial except it is before an administrative judge. Once the order or decision is submitted, the parties have 10 to 15 days to appeal. If appealed, the matter is transferred to a civl court for adjudication.
Otherwise, an employee may bring a breach of contract action in the appropriate civil court within 4 years if a written contract, and 2 years if breach of an oral contract.