Most California employees work at-will, but contractual obligations still arise in many employment relationships: written employment agreements, offer letters with specific terms, severance and separation agreements, commission and bonus plans, equity vesting schedules, deferred compensation arrangements, and implied contracts arising from employer policies or course of dealing.
Common disputes include unpaid commissions and bonuses, breach of equity grants, disputes over severance, claims for breach of the implied covenant of good faith and fair dealing, and disputes over restrictive covenants. Most non-competes are unenforceable against California employees under Business and Professions Code § 16600, and California has expanded that protection in recent legislative sessions.
In addition many employees, especially high level employees do have actual employment contract. And often, employees make the mistake of signing these contracts without having a lawyer review them first. If you need someone to review an employment contract, or if you have already signed one and believe the employer is not living up to their end of the contract, contact us immediately.
