Massachusetts Employment Contract: Definition, Key Considerations

What is a Massachusetts Employment Contract?

A Massachusetts employment contract is a legally binding agreement entered into by an employer and an employee. This agreement lays out the specific rights and obligations of both parties throughout the employment relationship. Employment contracts are most commonly used when hiring high level permanent employees, but can also be used when hiring temporary employees, contractors, and subcontractors.

Like many other states, Massachusetts is an “at-will” employment state. At will means that both the employer and an employee can end the working relationship at any time for any reason without notice. This puts the employee at a disadvantage because an employer does not need cause terminate a worker.

An employment contract is one way that an employee can protect their job and ensure that if they are fired, it was for a just reason. When an employment contract is executed in Massachusetts, the employee is no longer an “at will” employee. They are now considered a “contract employee”.

Are Employment Contracts Enforceable in Massachusetts?

Yes. Employment contracts are enforceable in Massachusetts. When an employer and an employee enter into a written and signed employment contract, both parties will be held to the terms of the contract. The contract will address like:

1. Job duties
2. Salary
3. Benefits
4. Time off and vacation
5. Company policy
6. Disciplinary procedures
7. Reasons for termination

If an employer fires a contract employee without a reason or does not adhere to the terms and conditions of the agreement, the employee may be able to sue for damages. On the other hand, the employer has the same rights so the employee must adhere to the contract as well.

What Are the Legal Requirements for Massachusetts Employment Contracts?

The legal requirements for Massachusetts employment contracts are governed by Massachusetts labor and industry laws. Employment contracts should be written and signed by both parties, however; Massachusetts will recognize oral and implied employment contracts.

An oral contract is a contract that was negotiated between the parties but never put in writing. An implied contract is when a contract is created based on the conduct and actions of both parties. These types of contracts are harder to prove but are still legally binding.

Types of Massachusetts Employment Contracts

There are several types of enforceable employment contracts used in Massachusetts. The type of contract will vary based on the job and the type of employee being hired to complete the work.

Many employers will also have employees sign restrictive employment contracts like non-disclosure agreements and non-compete agreements which are legal and enforceable in Massachusetts under certain circumstances.

Restrictive employment agreements are subject to specific limitations. The goal of these laws is to balance protection for the employer without creating an undue hardship on the employee.

Common types of employment contracts include:

• Permanent employment contract. This contract is used when hiring permanent employees. It will include information like job duties, salary, benefits, and reasons for termination. This contract will turn an “at will” employee into a “contract employee”.
• Non-disclosure agreement (NDA). A restrictive employment contract that prohibits employees from sharing confidential company information. This is often used to protect trade secrets or customer lists. Massachusetts will enforce an NDA.
• Non-compete agreement. A restrictive clause that limits an employee’s ability to work for a competitor of the company before and after employment. Non-compete agreements are enforceable in Massachusetts but must abide by certain conditions laid out in Massachusetts law.
• Non-solicitation agreement. Prevents employees from soliciting customers or other employees after employment. This clause will be enforced in Massachusetts.
• Independent contractor employment contract. Sometimes, workers that companies hire are not considered company employees but instead an independent contractor. Independent contractors are subject to different laws and rights than regular employees.