Does Your Company Need Employment Contracts?

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Does Your Company Need Employment Contracts?

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Businesses rely on a variety of contracts for operations and profits. However, have you considered whether you should have contracts with your employees? There can be benefits to having your employees sign agreements, but you want to be sure they are appropriate. Never hesitate to seek legal advice on the matter from a San Francisco business attorney who serves as outsourced general counsel.

General Employment Contracts

California is an at-will employment state, which means that in most cases, your company can end the employment relationship at any time and for any lawful reason. On the other hand, employees can also end the employment relationship when they wish. While most employers maintain at-will relationships, some require employment contracts for certain positions.

These contracts set a term of employment, and neither party can end it without cause. A contract should clearly state the obligations of both employee and employer in an unambiguous manner to avoid future disputes. If you decide to require employment contracts, always have them drafted by a skilled lawyer.

NDAs and Non-Competes

Some other contracts that employees might sign include non-disclosure agreements (NDAs) and non-competes. These might be necessary to protect your company’s trade secrets or prevent the wrongful gain of competitors and former employees.

However, these contracts are not appropriate in all employment situations, and many companies overuse them – or use poorly drafted agreements that are not enforceable in California. Discuss whether these contracts are appropriate with your outsourced general counsel and allow your attorney to draft and review all contracts.

Let a San Francisco General Counsel Lawyer Help Your Business

Primum Law Group knows that many businesses in the Bay Area do not have the need for full-time in-house general counsel. Contact us online or call 415.293.8042 to learn how our legal team can assist your company.

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