Employment Contracts Attorneys

California is the strongest state in the nation on this issue: non-compete agreements are void and unenforceable under Business and Professions Code Section 16600, with very narrow exceptions for the sale of a business. As of January 1, 2024, AB 1076 codified existing case law to make clear that any non-compete clause is void regardless of where or when the contract was signed. Employers cannot even require California employees to sign non-competes, and doing so may expose them to penalties. New York's landscape is more nuanced: non-competes are enforceable if they are reasonable in scope, duration, and geographic area, and necessary to protect a legitimate business interest (such as trade secrets or client relationships). However, New York courts regularly narrow or strike down overbroad non-competes, and there has been a strong legislative push to ban them entirely. If you are subject to a non-compete, an attorney can assess its enforceability based on your specific situation and jurisdiction.

Severance agreements deserve careful scrutiny because you are typically waiving significant legal rights in exchange for compensation. Key provisions to evaluate include: the amount and timing of severance pay (is it adequate given your tenure and the strength of potential claims?); the scope of the general release (what claims are you waiving? Does it cover future claims?); non-disparagement clauses (are they mutual? Can you still file government agency complaints?); confidentiality provisions (do they prevent you from discussing workplace misconduct?); cooperation clauses (can the employer compel your testimony in future matters?); references (what will the employer say about you?); and return of property and IP assignment terms. Under the Older Workers Benefit Protection Act (OWBPA), employees 40 and older must be given at least 21 days to consider the agreement (45 days in group layoffs) and 7 days to revoke. California law prohibits severance provisions that prevent employees from disclosing information about unlawful acts in the workplace, including harassment and discrimination, under Government Code Section 12964.5.

Generally, no. An employment contract is a binding agreement, and one party cannot unilaterally modify material terms — such as compensation, job duties, commission structure, or territory — without the other party's consent. If your employer changes your pay, role, or other material terms without your agreement and without contractual authority to do so, that may constitute a breach of contract. In some cases, drastic unilateral changes can also support a constructive discharge claim if the changes make your working conditions intolerable. However, some contracts include provisions giving the employer discretion to modify certain terms, so the specific contract language matters enormously. At-will employees without a written contract generally have fewer protections against changes, though even at-will employees may have implied contract rights based on handbooks, past practices, or verbal assurances.

Mandatory arbitration clauses require you to resolve employment disputes through private arbitration rather than in court before a judge or jury. They are common in employment agreements and often include class action waivers. While the Federal Arbitration Act (FAA) generally favors enforcement of arbitration agreements, there are growing exceptions. The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA) allows employees to void arbitration agreements for sexual harassment and assault claims. California has enacted AB 51 (Labor Code Section 432.6), which prohibits employers from requiring arbitration as a condition of employment for claims arising under FEHA and the Labor Code — though its enforceability has been litigated. Arbitration clauses can also be challenged as unconscionable if they are imposed on a take-it-or-leave-it basis (procedural unconscionability) and contain one-sided terms that heavily favor the employer (substantive unconscionability). An attorney can evaluate whether your specific arbitration clause is enforceable.

Breach of contract remedies aim to put you in the position you would have been in had the contract been honored. Common remedies include: compensatory damages (the monetary value of what you lost, such as unpaid salary, bonuses, commissions, equity, or benefits); consequential damages (foreseeable losses caused by the breach, such as lost opportunities or relocation expenses); specific performance (a court order requiring the employer to honor the contract, though this is rare in employment cases); and declaratory relief (a court ruling that a contract provision, such as a non-compete, is void or unenforceable). In both California and New York, the prevailing party in a contract dispute may recover attorney's fees if the contract includes a fee-shifting provision. Under California Civil Code Section 1717, if a contract provides attorney's fees to one party, the prevailing party is entitled to fees regardless of which side the clause was designed to benefit. The statute of limitations for written contract claims is four years in California and six years in New York.