Understand Your Employment Contract: What To Look For
Are you being asked to sign an employment contract? For certain types of employment, an offer may be extended along with a formal, written description of the benefits, expectations, and obligations attached to accepting the position.
An employment contract is usually the final word in defining the employment relationship. Signing it generally means agreement with its terms. Before signing employment contracts, employees or other workers should make sure they fully understand both their rights and responsibilities and that the contract is an accurate representation of what has been agreed to.
Getting offered a great job is an exciting career opportunity. But it is important to understand just what you are getting yourself into so unnecessary future disagreements can be avoided.
Common Provisions in Employment Contracts Employees Should Carefully Consider
As long as employment contracts comply with any applicable laws, there isn’t a required format that must be followed. Some employment contracts will be uniquely specific as required by particular types of employment.
Following are some typical provisions that should be carefully considered before signing an employment contract:
- Job Title and Responsibilities – Are the expectations spelled out clearly and easy to understand? Does the written explanation match what is being agreed to?
- Compensation – Is compensation an annual salary or an hourly wage? What about paid time off? Are there other paid benefits such as health insurance and retirement? When do benefits start? Are there any limitations?
- Scheduling – Is the position full-time? What is the expectation of hours worked per day or week? Is there a requirement to be at an office, or can work be performed off-site? Is the emphasis on time spent at work or on output produced?
- Termination of Employment – Are the reasons for employee dismissal clearly expressed? Are there any penalties associated with voluntarily terminating employment?
- Policies regarding inappropriate behavior – Does the employment contract describe inappropriate conduct that will not be tolerated in the workplace – such as harassment or discrimination – and have policies in place to handle such situations?
- Confidentiality – Is there a requirement that certain company information not be shared outside of employment? Is it clear what can be shared and what must be kept confidential?
- Non-compete – Are there any limitations on the ability to work at a similar position for another employer once employment terminates?
- Opportunities for Advancement – Is there a definite timetable, or is growth within a company based on performance? How will performance be measured? Can a poor performance evaluation be appealed?
- Dispute resolution – Does the contract have a mandatory arbitration clause limiting an employee’s right to bring an action in court should disputes arise?
If there are any provisions in an employment contract that are not understood or don’t match a previous understanding, the contract should not be signed until what is written expresses the complete agreement as understood by all parties.
What to Do if an Employment Contract Contains Provisions You Don’t Agree With
The best time to catch something that is not right in an employment contract is before it has been signed. That’s why it is so important to thoroughly read and make sure to understand every provision before entering into a legal relationship with an employer.
Employment contracts are intended to reflect an agreement between an employer and an employee. The contracts are generally drafted by attorneys representing employers and so may be more favorable to the employer who seems to be negotiating from a place of power.
But that doesn’t mean an employee cannot negotiate the terms or conditions presented in an employment contract before signing it. Employees must consider the time they may be working for an employer and how employment conditions can greatly impact attitude and productivity.
A New York employment law attorney can review an employment contract, identify terms that can be negotiated, and negotiate more favorable employment terms on behalf of an employee.
Recent Developments in New York Employment Law Affecting Employment Contracts
Employment contracts often contain provisions that are more favorable to the employer than to the employee. Recent legislation in New York demonstrates an intention to try and expand employee rights while limiting inequitable employer advantage.
One of the most controversial restrictions often contained in employment contracts is a non-compete agreement. Non-compete agreements limit an employee’s ability to work for a competitor of the employer for a period of time after employment ends and can impose real hardships on employees.
Non-compete agreements are banned in a few states but are currently still legal in New York after Governor Hochul vetoed a state senate bill last December that would have prohibited employers from seeking non-compete agreements.
Despite the Governor’s actions, New York employer non-compete agreements will be construed as narrowly as possible and will not be enforced if overly broad or unreasonable as to duration. Negotiating to minimize or eliminate a non-compete clause from an employment contract can remove a potentially contentious issue and avoid a legal dispute down the road.
As of September 15, 2023, New York employers can no longer require employees to assign over certain inventions created by employees on their own time without using employer equipment, supplies, facilities, or trade secrets. Any attempt by employers to require any such assignment will be unenforceable.
Where to Go for Advice About New York Employment Contracts
Employment relationships tend to work best when the terms and conditions of employment are agreeable to both employer and employee. Employees need to understand their rights and obligations before signing an employer-drafted contract and may want to negotiate more favorable terms before reaching a final agreement. Making sure an employment contract is an accurate expression of what all parties intend helps avoid misunderstandings and later disputes.
The labor and employment law attorneys at the Syracuse law firm of Gattuso & Ciotoli, PLLC have over 50 combined years of representing New York employees whose rights have been violated in the workplace. Whether you have questions about an employment contract or have been treated unfairly on the job, you can trust the experienced advocates at Gattuso & Ciotoli, PLLC to champion your best interests to the fullest extent of the law. Schedule your free consultation today.