Breach of Employment Contract- Specified Term Essential Factual Allegations in Wrongful Termination

A breach of an employment contract with a specified term in the context of wrongful termination in the state of California involves violations of the terms and conditions set forth in an employment agreement. When an employer terminates an employee in violation of these terms, it can lead to legal consequences. Below, I’ll provide an extensive overview of this legal concept, along with potential problems, examples, and detailed explanations.

1. Employment Contracts in California:

In California, employment contracts can be either at-will or have specified terms. An employment contract with a specified term means that the employment relationship is agreed to last for a specific duration or until a specified event occurs. Breach of such a contract occurs when either the employer or the employee fails to adhere to the terms.

2. Breach of Employment Contract Claims:

A breach of employment contract claim arises when an employer terminates an employee before the end of the specified term without legal justification. Key elements of such a claim include:

a. Contractual Obligations: The existence of a valid and enforceable employment contract with specific terms and conditions.

b. Unjustified Termination: The employer’s termination of the employee before the specified term without valid cause or justification.

c. Damages: The employee must demonstrate the damages suffered as a result of the breach, such as lost wages and benefits for the remaining contract period.

3. Legal Consequences of Breach of Employment Contract:

If an employer is found to have wrongfully terminated an employee with a specified term contract, potential legal consequences may include:

a. Compensatory Damages: The employee may be entitled to compensation for the wages and benefits they would have received for the remainder of the contract term.

b. Specific Performance: In some cases, the court may order the employer to fulfill the terms of the contract, such as reinstating the employee for the remaining contract period.

c. Attorney’s Fees: The prevailing party (often the employee) may recover attorney’s fees and legal costs.

4. Problems that Could Arise:

Several issues and complexities can arise in breach of employment contract cases:

a. Contract Interpretation: Disputes can occur over the interpretation of contract terms, including what constitutes a breach and whether certain actions or justifications are valid under the contract.

b. Termination Justification: Employers may argue that the termination was justified due to the employee’s misconduct or performance issues, which can complicate the determination of whether the termination was wrongful.

c. Mitigation of Damages:

Employees have a duty to mitigate their damages by seeking new employment. Employers may argue that the employee failed to make reasonable efforts to find new work, which can impact the damages awarded.

d. Enforceability of Non-compete Clauses: Some employment contracts may contain non-compete clauses that limit an employee’s ability to work for competitors or start their own business after termination. The enforceability of such clauses can be a subject of dispute.

5. Examples:

To illustrate the concept of breach of employment contract in California, consider the following examples:

a. Contractual Obligation: An employee signs a one-year contract to work as a software developer for a specific company. The employer terminates the employee after six months without valid cause. This could be a breach of the employment contract.

b. Termination Justification: A contract states that an employee can be terminated for “cause,” which is defined in the contract. If the employer terminates the employee without meeting the contract’s definition of “cause,” it may constitute a breach.

c. Mitigation of Damages: An employee with a one-year contract is terminated without cause. Instead of actively seeking new employment, the employee remains unemployed for the remainder of the contract period. This could affect the damages awarded.

Conclusion

In summary, a breach of an employment contract with a specified term in California can result in legal consequences for employers who terminate employees without proper justification. To address such cases, it is essential for both parties to understand their contractual obligations, seek legal advice if necessary, and consider the potential consequences of breach of contract claims in the state’s employment law context.

Call 310-312-1100 Now to schedule a time to discuss your matter with Attorney John Michael Jensen.

2420. Breach of Employment Contract—Specified Term—Essential Factual Elements

[Name of plaintiff] claims that [name of defendant] breached an employment contract for a specified term. To establish this claim, [name of plaintiff] must prove all of the following:

That [name of plaintiff] and [name of defendant] entered into an employment contract that specified a length of time that [name of plaintiff] would remain employed;
That [name of plaintiff] substantially performed [his/her/nonbinary pronoun] job duties [unless [name of plaintiff]’s performance was excused [or prevented]];
That [name of defendant] breached the employment contract by [discharging/demoting] [name of plaintiff] before the end of the term of the contract; and
That [name of plaintiff] was harmed by the [discharge/demotion].

New September 2003

Directions for Use

The element of substantial performance should not be confused with the “good cause” defense: “The action is primarily for breach of contract. It was therefore incumbent upon plaintiff to prove that he was able and offered to fulfill all obligations imposed upon him by the contract. Plaintiff failed to meet this requirement; by voluntarily withdrawing from the contract he excused further performance by defendant.” (Kane v. Sklar (1954) 122 Cal.App.2d 480, 482 [265 P.2d 29], internal citation omitted.) Element 2 may be deleted if substantial performance is not an issue.

See also CACI No. 304, Oral or Written Contract Terms, and CACI No. 305,

Implied-in-Fact Contract.

Sources and Authority

At-Will Employment. Labor Code section 2922.
Termination of Employment for Specified Term. Labor Code section 2924.
Contractual Conditions Precedent. Civil Code section 1439.
“[L]abor Code section 2924 has traditionally been interpreted to ‘inhibit[] the termination of employment for a specified term except in case of a wilful breach of duty, of habitual neglect of, or continued incapacity to perform, a duty.’ ” (Khajavi v. Feather River Anesthesia Medical Group (2000) 84 Cal.App.4th 32, 57 [100 Cal.Rptr.2d 627], internal citations omitted.)

CACI No. 2420 WRONGFUL TERMINATION

“Stated simply, the contract compensation for the unexpired period of the contract affords a prima facie measure of damages; the actual measured damage, however, is the contract amount reduced by compensation received during the unexpired term; if, however, such other compensation has not been received, the contract amount may still be reduced or eliminated by a showing that the employee, by the exercise of reasonable diligence and effort, could have procured comparable employment and thus mitigated the damages.” (Erler v. Five Points Motors, Inc. (1967) 249 Cal.App.2d 560, 562 [57 Cal.Rptr. 516].)

Secondary Sources

Chin et al., California Practice Guide: Employment Litigation, Ch. 4-A, Employment Presumed at Will, ¶¶ 4:2, 4:47 (The Rutter Group)

1 Wrongful Employment Termination Practice (Cont.Ed.Bar 2d ed.) Contract Actions, §§ 8.2–8.20 21 California Forms of Pleading and Practice, Ch. 249, Employment Law: Termination and Discipline, § 249.21 (Matthew Bender)

Call 310-312-1100 Now to schedule a time to discuss your matter with Attorney John Michael Jensen.