Employment contracts define the terms and conditions of the working relationship between an employer and employee. These agreements may address compensation, job responsibilities, benefits, confidentiality obligations, post employment requirements such as restrictive covenants, and the circumstances under which employment may be terminated.

Not all employees have formal written contracts, but when they do, the language of the agreement can significantly affect their rights and obligations. Even offer letters, compensation plans, and workplace policies can create enforceable terms depending on how they are written and applied.

Reasons Disputes Might Arise

Disputes involving employment contracts can arise when there is ambiguity about compensation, bonuses, commissions, job duties, termination provisions, or restrictive covenants such as non-competition or non-solicitation clauses. Understanding the terms of an agreement is often critical to determining whether an employer or employee has complied with their obligations.

Many states impose limits on certain contractual provisions. For example, some states such as California restrict the enforceability of non-compete agreements. Other states require specific conditions to be met before restrictive covenants can be enforced. New York, for example, prohibits “stay-or-pay” provisions that require certain employees to pay back expenses for leaving before a set time (with exceptions), effective December 19, 2026.

How We Can Help

Employees and employers with questions about employment agreements, contract negotiations, or potential breaches should consult with an attorney experienced in employment law to review the terms and explain their rights and obligations.

Learn more about non-compete agreements and workplace rights on the New York State Attorney General website.