Quick Facts — Employment Contract Lawyers (New Jersey)

What is a New Jersey Employment Contract?

A New Jersey employment contract is a legally binding contract between an employer and an employee that lays out the specific rights and obligations of both parties. Employment contracts can be used when hiring permanent employees, temporary employees, contractors, and subcontractors.

Some issues commonly addressed in a New Jersey employment contract include:

  • Compensation
  • Working hours
  • Vacation and time off
  • Job duties
  • Employment start date
  • Duration of employment
  • Procedures for discipline and grievances
  • Reasons for termination
  • Non-compete clause and non-disclosure clause

The purpose of an employment contract is to protect the rights of both the employee and the company for which they work. In an “at will” employment state like New Jersey, without an employment contract, employees can be terminated for any reason without notice.

Similarly, without an employment contract that includes non-compete clauses and non-disclosure clauses, an employer could risk at an employee sharing trade secrets or working for a competing company.

Are Employment Contracts Enforceable in New Jersey?

New Jersey views employment contracts as legally binding documents and therefore enforceable under New Jersey labor laws. Once agreed upon and signed, a New Jersey court will hold both parties to the terms of the contract.

Employment contracts must adhere to New Jersey contract laws. There needs to be an offer, acceptance, and consideration. The contract must be signed by legally competent adults and cannot include provisions that violate the law or public policy. For example, an employment contract cannot require an employee to agree to work for below New Jersey minimum wage.

Restrictive covenants like non-compete agreements will be enforced in New Jersey but must adhere to the following requirements:

  1. Used to protect the legitimate interests of the company
  2. Does not impose an undue hardship on the employee
  3. Does not injure the public

Courts will review non-compete agreements to determine whether the agreement is reasonable and decide if the restrictions meet the balance of protecting employers while allowing employees to earn a living.

What Are the Legal Requirements for New Jersey Employment Contracts?

Employment contracts can come in many forms so the legal requirements for this document are relatively lenient. New Jersey recognizes formal written contracts, offer letters, and even verbal agreements as valid employment contracts.

  • Written employment contract. It is recommended that all employment contracts be written and signed by both parties even though this is not a legal requirement. Written contracts are the easiest to enforce because there is a tangible document that can be used as evidence in court. A written contract will also help settle disputes before they reach court.
  • Offer letter. An offer letter is an informal document provided to prospective employees. The letter will contain information like job duties and pay but will be less detailed than a formal contract.
  • Verbal agreement. Verbal or oral agreements, although legal, are the most difficult to enforce because there is no proof the contract existed. If one party can prove the terms of the contract however, New Jersey will uphold this type of agreement.

Types of New Jersey Employment Contracts

Employment contracts come in many forms based on the type of work the company does or the type of employee being hired to complete the job. The three most common types of employment contracts used in New Jersey include:

  • Permanent employment contract. This contract is used by a company to hire a permanent employee with regular hours and an hourly wage or salary.
  • Fixed term employment contract. Used when hiring employees to complete a specific job. Employment ends once the terms of the contract are met.
  • Contractor agreement. When a company hires a contractor or a freelance worker this agreement lays out the terms and conditions for independent workers who are not employees of the company.

Frequently Asked Questions

How do I hire a lawyer to draft an employment contract in New Jersey?
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We are business and immigration attorneys, committed to delivering compassion-driven and innovative legal solutions that better our clients' lives. Founded in 2019, Carbone Law provides legal services tailored to the unique needs of our clients. We pride ourselves in building a personable attorney-client relationship and are dedicated to establishing a complete understanding of our client’s legal issues, so that we can develop an effective plan for achieving their desired results. Michael T. Carbone, Esq. started Carbone Law with the goal of delivering exceptional legal services to his community. At Carbone Law, Michael counsels individuals and small businesses on a variety of legal issues. Whether aiding families in building successful applications for immigration benefits or advising freelancers and business owners on contract, governance and related issues and the complexities of complying with federal, state and local laws, Michael is committed to building a lasting relationship with his clients.

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I have worked for over 20 years in the areas of family law, business formation, contracts and real estate law. In the area of family law, I represent clients in all areas of family law including child custody, child support, spousal support and marital property division as well as preparing prenuptial and separation agreements. I am experienced in real estate law, including commercial and residential leases, preparing various types of real estate related contracts. I am also experienced in business formation among other business law matters. I currently work in the area of grant management with the Small Business Administration.

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Education Jim Schroeder holds multiple degrees from several institutions. He received his Juris Doctor from Rutgers School of Law in Camden New Jersey. He also earned two additional Master’s Degrees from Asbury Theological Seminary in Wilmore, Kentucky and United Theological Seminary in Dayton, Ohio. In addition, Schroeder has done graduate work in Public Sector Labor Relations and American History at Rutgers University and Nonprofit Leadership at Duke University. Jim Schroeder was admitted to the New Jersey Bar Association in 2008; the District of Columbia Bar Association in 2010; the New York State Bar Association in 2014; and the Ohio Bar Association in 2020. He is also admitted to the Federal Courts of Southern New Jersey and Southern Ohio.

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I am a Spanish-fluent corporate and commercial real estate attorney and broker licensed in New York and New Jersey. My pragmatic approach towards conflict resolution allows me to provide valuable advice to clients on avoiding issues of liability through effective risk management and strategic allocation of resources. I counsel businesses, developers, owners and investors on residential/commercial real estate and corporate transactions involving the acquisition, finance, development, leasing and disposition of all asset classes. In addition, I advise on joint venture partnerships and the negotiation, structure and drafting of operating agreements. Throughout my successful practice, I have held in-house counsel positions at large corporations, including JPMorgan Chase and Duane Reade, and had the privilege of working for the Department of Justice where I honed expertise in all aspects of mortgage-backed securities.

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What is fixed term employment contract?

I have been given a contract that says 'Fixed Term Employment Contract'. How is this different than a normal employment contract? Is there anything I need to consider before signing this?

Michael M.

Answered Oct 7, 2022

This is an agreement that has a fixed amount of years which is agreed to by the employer and the employee. These types of agreements usually have a term of say 1, 2, or 3 years and often are renewable for another fixed term

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I am a potential employee considering a job offer from a company. I have received a copy of the employment contract, but I am confused about the position hierarchy outlined in it. Specifically, I am unsure of the differences between the various job titles and the roles and responsibilities associated with each one. I would like to know more about the position hierarchy in the contract to better understand the job I am considering.

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Position hierarchy may vary, as it is typically based on such factors as industry standards, company size, and internal policies. Before accepting an employment offer, a prospective employee should have a clear understanding of where the proposed position stands in the prospective employer's position hierarchy, as well as how the hierarchy affects the duties and responsibilities for that position. If the position hierarchy in a proposed employment contract or an employment offer letter is confusing, the prospective employee should seek clarification from the proposed employer.

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Without seeing the contract, there is no way of knowing.

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