McOmber McOmber & Luber

Business & Employment Lawyers Red Bank & Marlton New Jersey

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Employment Contracts

Employment Contracts

Employment contracts define the working relationship between an employer and an employee and outline the terms and conditions of employment, the employee’s job responsibilities, and the manner in which the employee may be separated from their employment. Compensation, insurance, retirement benefits, stock options and restrictive covenants can all be part of an employment contract. Negotiating the terms of an employment contract requires knowledge and experience that is best provided by an experienced employment lawyer.

At the Cherry Hill employment law firm of McOmber McOmber & Luber, P.C., our experienced and reputable employment lawyers are dedicated to helping our clients enter into employment contracts that are reasonable and legally sound. There are many terms that can be defined in an employment contract. Failing to carefully examine the language and terminology used in the agreement can have a negative effect on your future job opportunities and earning potential. We help our clients negotiate contracts that are fair and ensure that your legal rights are protected.

Types of Employment Contracts in New Jersey

There are many different types of employment contracts and agreements. Once finalized, employers and employees are bound to the provisions within these agreements. Generally speaking, these contracts are legally binding and carry significant weight in New Jersey Courts.

  • Confidentiality and Non-Disclosure Agreements: This type of agreement specifically defines what information an employee can disclose to third parties, such as a competitor. Confidential information can include such things as trade secrets, financial information, customer lists, proprietary methods and processes, and other such information Employees that violate the terms of these agreements can face termination, a lawsuit, or other legal consequence.
  • Employment Agreements and Executive Agreements: This type of agreement outlines an employee’s job description, which can include the length of employment, responsibilities, compensation and benefits, and retirement or stock options. These agreements may also address how dispute resolutions will be handled.
  • Non-Compete, Non-Solicit and Restrictive Covenants: In these types of agreements, employees agree to specific provisions that limit them from opening up a similar business or working for a competitor after termination. These covenants may also prohibit the employee from soliciting active or recently-separated employees to work with or for them, or to contact or solicit clients from the former employer.
  • Severance Packages: When an employee separates from a company, either through being terminated or resigning, the employee may be offered a severance package. A severance package is a compensation package offered in exchange for the employee waiving and releasing any legal claims against the company. The language used to draft these agreements can be very confusing and signing a severance agreement without legal counsel can lead to restrictions on future employment and, more importantly, may restrict the employee’s ability to sue their employer for a legitimate reason – such as sexual harassment or other employment discrimination.  The severance agreement may actually be inadequate “hush money” to cover up a violation of the employee’s rights or an unlawful firing.  For this reason, it is imperative that employees consult with knowledgeable employment attorneys before signing a severance agreement.

Cherry Hill Employment Lawyers at McOmber McOmber & Luber, P.C. Negotiate Employment Contracts

Entering into an employment contract is serious. The terms and conditions of your employment, benefit packages, and restrictions on future employment and earning potential can have a significant impact on your career. The terminology and legal verbiage can be confusing and it is vital that you fully understand what terms you are agreeing to before you sign.

Our Cherry Hill employment lawyers at McOmber McOmber & Luber, P.C. have over 40 years of experience drafting, negotiating, and resolving disputes in employment contracts. Our team of highly skilled employment lawyers in New Jersey will ensure that your legal rights and best interests are protected at every step of the process.

Employment Contracts FAQs

  • Can I File for Unemployment if I Am on Strike?

    In New Jersey, workers involved in labor disputes may have the option to file for unemployment. This legislation allows striking workers to collect these benefits if their employer breaks the stipulations outlined in their employment contract or collective bargaining agreement. Additionally, employees could be entitled even if the disagreement is not related to their company’s refusal to follow the employment contract’s terms. There is a mandatory 30-day waiting period for filing claims.

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  • What Is the Difference Between Reduction in Force (RIF) and Layoffs?

    A reduction in force (RIF) is the permanent termination of employees due to restructuring, the elimination of their department, or a lack of funding or available work to support those employees. A layoff, on the other hand, technically means that the termination is only temporary. However, it has come to mean a permanent termination in recent years, and in many cases, employers use it to mean exactly that. Individuals who lose their jobs to RIF and layoffs are entitled to collect unemployment benefits. In addition, if your employment contract included a severance pay clause, you are entitled to receive this payment.

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  • What Is the NJ WARN Act?

    The New Jersey Millville Dallas Airmotive Plant Job Loss Notification Act (NJ WARN) expands part of the Federal WARN Act by requiring notice even when the employment losses result from a sale of a business.

    The NJ WARN Act also contains strict provisions with respect to job transfer circumstances and penalties for employers violating the Act.

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  • What is an Implied Contract?

    Implied contracts are a confusing area of at-will employment which can be easily misunderstood, but can also frequently benefit an employee in employee/employer relations. There are two types of implied contracts, implied in-fact and implied in-law.

    If a contract is implied in-fact, that means that the obligation is created between these parties due to the facts of the situation. If the parties’ conduct suggests an understanding, the law may find an implied in-fact contract. An example of this would be an individual being paid to mow a neighbor’s lawn several weeks in a row, only for the “employer” to refuse payment the fourth week. The law would find that an implied contract existed between the two.

    An implied in-law contract is a situation in which the law imposes a duty to fulfill an unwritten contract. This can apply even if it is against an individual’s will. For example, if a doctor saves a bystander’s life, they are justified in billing the individual for their services.

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  • What Role Does My Employment Contract Play In Helping My Wrongful Termination Case?

    Your employment contract could potentially help your wrongful termination case. Another exception to at-will employment is the existence of an employment contract which sets forth:

    • Acceptable grounds for termination; and
    • Procedures and protocols to be followed by an employer when termination of employment will be sought.

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