Breach of Employment Contract

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Oct24

Breach of Employment Contract

Linda Chan

October 24, 2006

Know More: Contracts 2.0, Contracts

The following is not meant to be legal advice, and is for information purposes only.

On October 14, 2006, Kenneth J. Sugarman, an associate at Rudy Exelrod & Zieff, LLP, spoke in San Francisco, CA on breach of contract and unpaid incentive compensation.

When employees have employment contracts, the employers need to understand terms relating to bonus such as the timing of payment, and the ability to terminate. For instance, “cause” for termination may be interpreted to mean a person willfully not doing a job, such as drinking while at work, or failing to perform a job.

Employers should be aware that bonuses in the contracts may be treated as wages under the Labor Code. When there is a violation of a Labor Code, the employee who files a lawsuit may seek attorney fees and costs versus in a breach of contract action where the fees and costs come into play only if they are written into the contract. For the employee, it is more strategic to have a violation of the Labor Code than a breach of contract action.

related entries

Acknowledgment Form Dec 12, 2007
Goldman Sachs Nov 23, 2007
Contract Terms Oct 27, 2007
Commitment Letters Oct 20, 2007
Commercial Transactions Oct 19, 2007

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