Things to Look for Before Signing That Employment Contract

Because California, like many states, is an at-will employment state, many employers simply would rather be able to fire you for any reason, rather than worry about whether they are complying with or violating an employment contract.   Therefore, it is becoming more and more rare to have to sign or worry about agreeing to employment contracts.

That said, there are industries where employment contracts are still used. And if one is presented to you, there are things you should look for, before signing, other than salary and payment, which most people will look to first and foremost.

Job Description and Titles

Because you have a contract, that contract should spell out what kind of work is and is not expected from you. The problem is that often, the job as it is described to you, isn’t the job that is explained in your employment contract. Make sure that the description of the job, and your regular job duties as stated in the agreement, is what you are expecting them to be.

To avoid having to pay employees under the Fair Labor Standards Act or FLSA, many employers will call you a supervisor or a professional or give you other titles that are FLSA-exempt.

While those titles sound really good and look good on a resume, they may exclude you from things like the right to collect overtime pay. Don’t let yourself be called a manager, or an executive, or a supervisor, or a similar title, if you in fact are not.

Remote Work and Personal Devices

If you are allowed to work remotely, that may be great for you. But make sure that there is no obligation that you are on-call 24/7, or if you are, that you are being paid for that time. Otherwise, “work from home” becomes “always be available when the boss has to contact you.”

If you will be using any personal devices, like your own cellphone or laptop or home computer, make sure that you aren’t agreeing that everything on your personal devices belongs to your employer.   And, you should be provided a stipend for phone/internet usage.

In an effort to ensure the privacy and confidentiality of their information and communications, many employers will require you to do things like surrender personal devices for inspection or allow your employer to wipe your devices as they see fit, when and if your employment with the company ends.

Bonuses and Commissions

If you do get any additional pay, like bonuses or commissions, is there an objective measure for what you earn and when you will be paid?

A bonus “for good work,” doesn’t tell you anything, whereas, for example, a bonus for “generating 100 new clients in a specified time period” gives you an objective benchmark to strive for, and takes discretion out of your employer’s hands.  Meaning, the bonus is mandatory as long as you meet the criteria set.  Plus, you always want this information in writing to be enforceable.

Leads and Clients

If you’re generating or referring leads or clients, who do those clients belong to when your employment ends? These may be close personal friends or longtime clients of yours. Make sure you understand what happens to the business or customers you create or generate for your employer, when you’re done working there. And, be sure this is spelled out in a writing.

Questions about your employment contract? Contact the California employment law attorneys at the Costanzo Law Firm today.

Sources:

airswift.com/blog/employment-contract-review

blog.lexcheck.com/employment-contract-analysis-what-to-look-for-in-your-contracts-lc