California employment contract template

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How California employment contract Differ from Other States

  1. California law strictly limits non-compete clauses and generally makes them unenforceable, unlike many other states.

  2. Employers in California must comply with specific meal and rest break regulations that exceed federal standards.

  3. California mandates more comprehensive anti-discrimination and employee protection provisions than most other states.

Frequently Asked Questions (FAQ)

  • Q: Are non-compete agreements enforceable in California?

    A: Generally, non-compete agreements are not enforceable in California, except in limited circumstances involving the sale of a business.

  • Q: What are required breaks for employees under California law?

    A: California law requires a 30-minute meal break for every five hours worked and a 10-minute rest break for every four hours.

  • Q: Does a California employment contract need to be in writing?

    A: Not always, but having a written contract is recommended to clearly outline terms and comply with California labor laws.

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California Employment Contract

This Employment Contract is made and entered into as of [Date], by and between [Employer Name], a [State of Incorporation] corporation with its principal place of business at [Employer Address] ("Employer"), and [Employee Name], residing at [Employee Address] ("Employee").

1. Position and Responsibilities

  • The Employer hereby employs the Employee in the position of [Job Title].
  • The Employee's responsibilities shall include, but not be limited to:
    • [List of Responsibilities]
    • Any other duties as assigned by the Employer from time to time.
  • Work Location:
    • The Employee’s primary work location will be [Work Location].
    • Option: The employee may be required to travel to other locations as required by the employer.

2. Employment Type

  • Option A: Full-Time Employment
    • The Employee's position is a full-time position.
  • Option B: Part-Time Employment
    • The Employee's position is a part-time position. The employee’s expected hours will be [Number] hours per week.
  • Option C: Temporary Employment
    • The Employee's position is a temporary position for a period of [Duration], commencing on [Start Date] and ending on [End Date].

3. Exempt or Non-Exempt Status

  • Option A: Exempt
    • The Employee is classified as exempt from overtime pay under California law.
  • Option B: Non-Exempt
    • The Employee is classified as non-exempt from overtime pay under California law. The Employee shall be compensated for overtime hours worked in accordance with California law.

4. Term of Employment

  • Option A: At-Will Employment
    • The Employee's employment with the Employer is at-will. This means that either the Employee or the Employer may terminate the employment relationship at any time, with or without cause or notice, subject to applicable California law.
  • Option B: Fixed-Term Employment
    • The Employee's employment will be for a fixed term commencing on [Start Date] and ending on [End Date].
    • The employee’s performance will be evaluated on [Date], and the employment contract renewal will be determined according to [Evaluation Criteria].

5. Compensation and Benefits

  • Base Salary/Wage:
    • Option A: Salary
      • The Employee shall receive an annual salary of [Salary Amount], payable in accordance with the Employer's regular payroll schedule.
    • Option B: Wage
      • The Employee shall be paid an hourly wage of [Wage Amount], payable in accordance with the Employer's regular payroll schedule.
  • Overtime: For non-exempt employees, overtime shall be paid at one and one-half (1.5) times the Employee's regular hourly rate for all hours worked in excess of eight (8) in a workday or forty (40) in a workweek, and at two (2) times the Employee’s regular hourly rate for all hours worked in excess of twelve (12) in a workday, in accordance with California law.
  • Benefits:
    • The Employee shall be eligible for the following benefits, subject to the terms and conditions of the applicable benefit plans:
      • Health Insurance
      • Dental Insurance
      • Vision Insurance
      • Retirement Plan ([e.g., 401(k)])
      • Life Insurance
      • Paid Sick Leave: The Employee shall accrue paid sick leave in accordance with California law.
      • Paid Vacation/Paid Time Off (PTO): The Employee shall accrue [Number] days of paid vacation/PTO per [Year/Month].
      • Family and Medical Leave: The Employee may be eligible for family and medical leave under applicable California and federal laws.
      • Other Leaves: Jury duty leave, bereavement leave, etc.
      • [Other Benefits]

6. Employment Conduct

  • Working Hours: The Employee's normal working hours shall be [Start Time] to [End Time], [Days of the Week].
  • Overtime: Overtime work requires pre-approval from the Employer.
  • Code of Conduct: The Employee shall adhere to the Employer's code of conduct and all company policies, as may be amended from time to time.
  • Dress Code: The Employee shall adhere to the Employer's dress code, which is [Dress Code Description].
  • Performance Standards: The Employee is expected to meet or exceed the performance standards established by the Employer for their position.
  • Option: Refer to attached job description for more detailed expectations and workplace conduct rules.

7. Intellectual Property and Confidentiality

  • Confidential Information: The Employee acknowledges that during the course of their employment, they will have access to confidential and proprietary information of the Employer.
  • Non-Disclosure: The Employee agrees not to disclose any confidential information of the Employer to any third party during or after their employment, except as required by law.
  • Ownership of Work Product: All work product, inventions, and other intellectual property created by the Employee during their employment shall be the sole and exclusive property of the Employer.
  • Option: Refer to separate Intellectual Property Assignment and Confidentiality Agreement for detailed terms and conditions.

8. Non-Compete, Non-Solicitation, and Departure

  • Note: Non-compete agreements are generally unenforceable in California, except in limited circumstances as provided by law.
  • Option A: Non-Solicitation
    • During the Employee's employment and for a period of [Number] months following termination of employment, the Employee agrees not to solicit the Employer's employees, customers, or clients.
  • Option B: No Restrictions
    • This agreement does not contain any non-compete or non-solicitation restrictions.
  • Upon departure, the Employee must return all Employer property, including but not limited to, computers, phones, documents, and access cards.

9. Termination

  • Voluntary Resignation: The Employee may resign their employment by providing the Employer with [Number] days written notice.
  • Termination by Employer: The Employer may terminate the Employee's employment at any time, subject to applicable California law.
  • Final Pay: Upon termination, the Employee shall receive all wages and other compensation due to them in accordance with California law.
  • Option: Severance Agreement: If the Employee's employment is terminated by the Employer without cause, the Employee shall be entitled to severance pay in accordance with the terms of the attached Severance Agreement.
  • Termination shall be in compliance with California requirements and shall not be based on discrimination, retaliation, or violation of California anti-discrimination laws.

10. Dispute Resolution

  • Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of California.
  • Option A: Mediation
    • Any dispute arising out of or relating to this Agreement shall be resolved through mediation in [City, State] before resorting to arbitration or litigation.
  • Option B: Arbitration
    • Any dispute arising out of or relating to this Agreement shall be resolved through binding arbitration in [City, State] in accordance with the rules of the American Arbitration Association.
  • Option C: Litigation
    • Any legal action or proceeding arising out of or relating to this Agreement shall be brought in the state or federal courts located in [County, State].

11. Workers' Compensation and Workplace Safety

  • The Employer shall provide workers' compensation insurance coverage for the Employee as required by California law.
  • The Employer shall maintain a safe and healthy workplace in compliance with all applicable occupational safety standards.
  • The employee must promptly report any workplace injury or illness to the Employer.
  • Option: The employer maintains a comprehensive safety program, detailed in the employee handbook.

12. Anti-Discrimination and Equal Employment Opportunity

  • The Employer is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex (including pregnancy, childbirth, and related medical conditions), sexual orientation, gender identity, national origin, age, disability, genetic information, marital status, veteran status, or any other characteristic protected by law.
  • Option: Harassment of any kind will not be tolerated in the workplace.

13. Entire Agreement

  • This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Employer Name]

By: [Employer Representative Name]

Title: [Employer Representative Title]

[Employee Name]

[Employee Signature]

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