Recent Answers to Employer Law Questions
Can I terminate an employee without cause?
Employer
Contract for Employment
California
I recently hired an employee for my small business, but they have not been performing up to the expected standards and I am considering terminating their employment. However, I did not include a termination clause in their employment contract and I am unsure if I can terminate them without cause. I want to understand my rights as an employer and the potential legal implications of terminating an employee without cause.
Randy M.
You can legally let this employee go without cause. California follows at-will employment, which means you’re allowed to end the working relationship at any time, for any lawful reason, or even no specific reason at all. Since the contract doesn’t include a termination clause, that doesn’t limit your right to do so. The default at-will rule still stands. In fact, not having a termination clause actually works in your favor here. Under California Labor Code Section 2922, if there’s no set duration for the job, either party can walk away at will. You don’t need special contract language to make that valid. That said, there are important legal limits you’ve got to keep in mind. You can’t fire someone because of their race, gender, age, religion, disability, sexual orientation, or any other protected category under California’s Fair Employment and Housing Act. You also can’t let someone go for filing complaints about things like discrimination, unsafe working conditions, or workers’ comp claims. Watch for any implied contract situations too. If you’ve made comments about job security, followed specific disciplinary steps from an employee handbook, or created the sense of guaranteed long-term employment, a court might view that as an unwritten agreement. That could limit your ability to terminate at will. The employee could argue they reasonably believed they’d only be fired for cause based on your past words or actions. To protect yourself, document performance issues clearly. Include dates, examples, and any prior feedback you’ve given. If you’ve got a disciplinary policy in your handbook, stick to it. And make sure your decision has nothing to do with any protected traits or recent complaints the employee may have made. Here’s one legal requirement you absolutely can’t skip: You must provide the final paycheck on the same day you terminate employment (see California Labor Code Section 201). That includes any unused vacation time, which counts as earned wages. If you’re late on that payment, you could be on the hook for waiting time penalties (up to 30 days of the employee’s daily wages). That adds up fast. Even though wrongful termination claims are always possible, solid documentation and following correct steps make them much easier to defend against. If you’ve kept records and stayed compliant, the employee would have to prove your reasons were just a cover for discrimination or retaliation, which is tough with a clear paper trail. Helpful links for reference: California Labor Code Section 2922 (At-Will Employment): https://codes.findlaw.com/ca/labor-code/lab-sect-2922/ California Labor Code Sections 201 and 203 (Final Paycheck Rules): https://codes.findlaw.com/ca/labor-code/lab-sect-201/ https://codes.findlaw.com/ca/labor-code/lab-sect-203/ California Civil Rights Department (Discrimination Info): https://calcivilrights.ca.gov/ Department of Industrial Relations (Wage and Hour Info): https://www.dir.ca.gov/dlse/faqslist.html
Can an employer enforce a confidentiality agreement after termination of employment?
Employer
Employee Confidentiality Agreement
Texas
I recently left my previous job and signed a confidentiality agreement during my employment. The agreement stated that I cannot disclose any confidential information about the company or its clients. Now, I am considering starting my own business in a similar industry and I'm wondering if my former employer can still enforce the confidentiality agreement against me, even though I am no longer employed by them. I want to make sure I am not violating any legal obligations before moving forward with my business plans.
Darryl S.
Almost certainly the NDA applies after your employment. You should take care not to use highly confidential information, such as customer names and contract info in your new company. The simple answer is YES - it is enforceable after termination of employment
How to draft a noncompete agreement?
Employer
Noncompete Agreement
Florida
I am a business owner who is looking to hire a new employee and I want to ensure that my business does not suffer from any competition that the employee might bring in the future. I need to know how to draft a noncompete agreement so that I can protect my business from any potential risks.
Daniel D.
Some things that would be relevant to know are: what industry are you in? What specific competition are you worried about? Are you going to include non-disclosure provisions, no-solicitation provisions or non-circumvention provisions? What risks are you specifically worried about?
Can a noncompete agreement be waived?
Employer
Noncompete Agreement
Connecticut
I am a small business owner in the retail industry and I am looking to hire a new employee. The employee has a noncompete agreement with their previous employer that I am concerned about. I want to know if it's possible for the agreement to be waived so that I can be sure I'm making the right decision in hiring this employee.
Thomas L.
Yes, the parties to contracts can always agree to amendments and waivers. However, the former employer may have no interest in waiving the contract in this particular situation.
Can partners hire employees in a general partnership?
Employer
General Partnership
California
I am a small business owner considering setting up a general partnership with another business owner. We are both looking to maximize our resources and capabilities by hiring employees, but I am unsure of the legal implications. Can partners in a general partnership hire employees, and what are the legal requirements for doing so?
Michael S.
Partners in a general partnership have apparent authority to take any action on behalf of the partnership, including hiring employees. This is true even if the partners have agreed between themselves that one a partner does not have the authority to hire employees. A partnership that limits the authority of one partner would give rise to a claim by one partner against the other, but third parties can rely on the apparent authority of a partner to make hiring decisions.