Attorney
Drafting employment contracts in Connecticut requires careful attention to numerous aspects of contract and employment law. If legal considerations are not given the proper focus and consideration, an employment contract may not be legally enforceable. At worst, the employment contract could violate one or more employment and anti-harassment laws. Below is a discussion by our Fairfield County employment lawyers of legal considerations for drafting employment contracts in Connecticut.
Understanding the Importance of Employment Contracts in Connecticut
Employment contracts are critical for defining the relationship between employees and employers. Contracts outline the terms of employment, including dispute resolution, compensation, benefits, job responsibilities, and employment duration.
Employers benefit from employment contracts because they protect business interests by safeguarding confidential information, customer relationships, and trade secrets. The contracts provide structure, clarity, and transparency in the hiring process.
Employees benefit from employment contracts because they provide security and stability. Contracts can define expectations and provide legal protection for employment-related issues.
At-Will Employment and Exceptions Under Connecticut Law
Connecticut follows the at-will employment doctrine. An employer may terminate employment at any time, with or without notice. The employer can use almost any reason to fire the employee, provided the reason is not illegal. Employees can leave a job without notice or for any reason.
Employment contracts can modify certain aspects of at-will employment. An employment contract can specify when and how an employee is terminated. The contract may protect the employee from at-will termination. Even implied contracts can give employees some protection.
Key Elements to Include in a Connecticut Employment Contract
A well-drafted employment contract defines all terms of employment to protect the employer and the employee. The goal is to minimize the risk of disputes and provide a mechanism for resolving them when they arise.
Key elements of an employment contract include:
Basic Information and Job Description
The basic information for an employment contract includes:
- Official start date
- Identification of the parties
- Employment type (i.e., independent contractor, employee, full-time, part-time, temporary, permanent, etc.)
- Work location
The job description needs to include the job title, job duties, and responsibilities. The contract should also include the reporting structure for the job and the performance standards or objectives.
Benefits and Compensation
This section of an employment contract explains an employee’s compensation, which may be hourly, commission, salary, etc. It also defines the pay periods, such as weekly or bi-weekly. Overtime and incentive problems should be clearly defined.
Benefits may include paid time off, health insurance, sick leave, retirement plans, and life insurance. A company may offer paid cell phone service, company cars, mileage reimbursement, and other benefits. If an employee is eligible to receive reimbursement for expenses, the contract must clearly define the reimbursement policy and procedure.
Protective Clauses
A comprehensive employment contract must include protective clauses that safeguard the company’s interests. Protective clauses include, but are not limited to:
- Non-Solicitation Clause
- Confidentiality Clause
- Non-Disclosure Agreement (NDA)
- Non-Compete Agreement
- Intellectual Property Rights
- Dispute Resolution
While these clauses are often seen as protecting the employer, the clauses also protect the employee. The clauses clearly define what the employee can and cannot do. An employee can also negotiate the terms of some of these clauses to ensure they are fair.
Termination of Employment
This section of an employment contract details the circumstances under which an employer or employee may terminate employment. It provides notice periods for termination or resignation. The contact may also include details of severance pay and packages.
Legal Compliance and Enforceability
An employment agreement must comply with all Connecticut and federal labor laws, including the Connecticut Fair Employment Practices Act (CFEPA). The contract should clearly state that the laws of the State of Connecticut govern it.
Avoiding Common Drafting Mistakes for Employment Contracts in Connecticut
When drafting an employment contract, mistakes to avoid include:
- Using vague or unenforceable language
- Failing to specify termination rights or policies
- Using overly broad non-compete agreements
- Choosing a generic template or relying solely on online resources
- Failing to consult an attorney during negotiations, drafting, and executing
- Failing to include all elements of a valid contract
Working with an attorney can avoid mistakes that could result in future disputes and costly litigation.
Working with a Fairfield County Employment Law Attorney
It is highly recommended that employers and employees consult with an experienced Fairfield County employment contract lawyer when negotiating and signing employment contracts. Working with an attorney ensures that an employment contract is tailored to the specific needs of the employment relationship and complies with the law.
Contact Mitchell, Sheahan & Slippen, P.C. to schedule a confidential consultation with one of our Fairfield County employment lawyers.