New York Employment Contract: Definition, Key Considerations
Quick Facts — Employment Contract Lawyers (New York)
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What is a New York Employment Contract?
A New York employment contract is a legally binding agreement that an employer and new employee use to define the roles and obligations of each party in the employment relationship. Employment contracts can be used when hiring temporary employees and contractors but are most often used for highly paid permanent employees.
It is common to include the following negotiated issues in a New York employment contract:
- Job title and duties
- Employment start date
- Compensation
- Benefits
- Working hours
- Vacation and time off
- Procedures for discipline and grievances
- Reasons for termination
- Non-compete and other restrictive clauses
The primary purpose of an employment contract is to protect the rights of the employer and the employee. New York is an “employment at will” state. This means without an employment contract employees can be terminated for any legal reason or no reason at all without notice. An employment contract will lay out specific reasons for termination that an employer must abide by which protects an employee’s job.
The restrictive covenants protect employers by prohibiting the employee from taking actions that could damage the company. Common restrictive covenants include non-compete agreements, non-disclosure agreements, and non-solicitation agreements.
Are Employment Contracts Enforceable in New York?
Employment contracts are only enforceable in New York if they are in writing and signed by both parties. The only exception to this rule is if the duration of employment is less than one year long. Contracts that can be completed in less than one year are not subject to the Statute of Frauds and therefore can be enforced without a written agreement.
For example, if a company verbally offers an employee a position for five years and the employee accepts, the agreement will not be enforced unless it is writing. If the employee begins working for this company, they will be considered an “at will” employee who can be fired at any time for any reason.
What Are the Legal Requirements for New York Employment Contracts?
New York requires employment contracts to be in writing and signed by both parties. To be legally binding, there must be an offer, acceptance, consideration, the intent to be bound, and mutual assent. Contracts that will be used for employment not exceeding one year can be oral contracts, but it is highly suggested that even short-term employment contracts be written and signed.
Non-compete agreements are also enforceable in New York but must meet a separate set of legal requirements. These requirements are:
- The agreement must be necessary to protect the employer’s legitimate business interests
- It cannot impose undue hardship on the employee
- The contract cannot harm the public
- It must be reasonable in duration and geographic boundaries
More information about New York employment and labor laws can be found in Chapter 31 of the Consolidated Laws of New York.
Types of New York Employment Contracts
There are several types of New York employment contracts. The contract used will be based on the purpose of the contract, the type of work the company does, and the type of employee hired.
Commonly used employment contracts 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, like seasonal workers, who work for a specific time period.
- Contractor agreement. Used when a company hires an independent contractor who is not a company employee to complete a job.
- N on-compete agreement . Prohibits employees from starting a business or working for a company that is direct competition of the employer.
Frequently Asked Questions
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Meet some of our New York Employment Contract Lawyers
Leonid G.
I have been practicing law since 2018. I used to be a litigator at a nationwide practice before going in-house at a fintech company. I have experience drafting NDAs, SaaS contracts, service agreements, and stock purchase agreements.
"I highly recommend working with Leonid for any of your legal needs. Leonid clearly explained the process step by step, made sure to take the time to fully understand my case, and fought hard on our behalf. Hiring Leonid to represent my business not only made the entire process a lot less stressful, but also resulted in saving us some money on our settlement. Thanks again for all the help!"
Bradford T.
I have been practicing law for almost 23 years.
"Brad and his partner did a great job in solving my legal issues. They were knowledgeable, professional and detailed in their approach."
February 12, 2024
Lissette E.
Lissette's legal career, spanning over a decade, is distinguished by her significant achievements in civil litigation and her versatile practice in immigration and corporate law. She has demonstrated a formidable presence in the courtroom, securing a verdict of over two million dollars for a client and settling claims totaling more than three million dollars against insurance companies. She is proficient in complex litigation and corporate matters, assisting corporations with entity formation and regulatory compliance. Her work ensures that businesses not only start on a solid legal foundation but also maintain adherence to legal standards as they grow and evolve. Lissette's tenure at the Department of Justice has also been particularly influential. Working directly with immigration judges, she has developed a nuanced understanding of immigration policies and law, enabling her to craft winning strategies that address the unique challenges faced by her clients. Her career is further enriched by her previous teaching engagements at the Maurice A. Deane School of Law at Hofstra University, where she shared her comprehensive knowledge and experience with aspiring lawyers. Lissette's multifaceted expertise underscores her deep-rooted commitment to legal advocacy and excellence, making her a valued counselor and advocate. Known for her tailored client solutions, Lissette achieves successful outcomes across various legal domains.
February 27, 2024
V. Yvette S.
I am a highly skilled attorney, fluent in English and Spanish with 20 years of legal experience and 8 additional years of real estate, project finance, banking, financial, securities, and start-up company experience. I worked 6 years with 2 international law firms and handled extremely complex work for all types of clients, 3 years with a Federal Government Regulator, and 5 years in various compliance management positions at national and international financial institutions. I am licensed in New York and North Carolina. I will handle federal litigation on a non-contingency basis. I also practice Appellate Advocacy for constitutional, employment, consumer, and corporate laws. I am skilled in many different NY and NC laws. I have successfully represented clients with state and federal regulatory investigations. I can help you with the FDA, SEC, OCC, CFPB, FDIC, FR and certain state regulators.
April 15, 2024
David S.
An experienced attorney, fully versed in all facets of commercial and developmental real estate, and general corporate practice, including representing all parties in purchasing, asset purchases, leasing and financing transactions. Experienced in the following areas: Real Estate Development/Development Projects • General Contract Drafting and Negotiation • Construction Contracts •Bankruptcy• Corporate Governance • Transactional Real Estate • Real Estate Financing • Litigation Mergers/Acquisitions • Labor and Employment • Management Equipment Leasing • Land Use • Landlord Tenant Matters
April 13, 2024
Joseph R. C.
Over 20 years experience in complex litigation and transactional work.
April 15, 2024
Melissa T.
New York licensed attorney with 17 years of Commercial Real Estate. In-house since 2009. Generalist experience in many areas of law, including Corporate, Real Estate, Finance, Securities, Commercial, Litigation, Cybersecurity, Privacy, Labor, Landlord Tenant, Alternative Dispute Resolution, Transactions and Leasing, etc.
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Browse Lawyers NowLawyer Reviews for New York Employment Contract Projects
Review Employment Contract, Flight Sim Builder
"Quick and concise. Responded to follow up questions quickly."
Employment Contract Review
"Provided quick help with an agreement."
Review of employment contract for an Physician Associate
"I needed an APP employment contract reviewed and I engaged Allen to do the work. Very shortly after I took him on and uploaded the contract, he contacted me to verify things and to let me know what to expect. He turned around the review within one day, and it was thorough and comprehensive. I asked a few follow-up questions and he was prompt in replying and detailed in his answers. I would not hesitate to hire Allen in the future for this type of work again."
Reply From Allen L.
Thank you -- glad the review was thorough and the quick turnaround and follow-up answers were helpful. Best of luck in the new role. Allen
View MoreEmployee-Side Review of Startup Offer Package (Offer Letter + Option Agreement + EIP)
"Fast turnaround (a day early), thorough memo, practical judgment on what to fight vs. accept. Will use again."
Employment Contract Review
"Harry was wonderful to work with. He was responsive and went above and beyond while helping me get to the result I was seeking."
Labor
Employment Contract
Georgia
I was recently let go after complaining about discrimination and targeted. I was termed with a severance package. I want to know if I can renegotiate the severance.
Can I get more on my severance since I was let go after complaining about discrimination to my employer?
Donya G.
That sounds like it would depend on the reasons you were given for being let go. Did you document your grievances in an email or where they just done by word of mouth? You should consult with a GA attorney that specializes in employment law to assit. All the best Donya Gordon
Employment
Employment Contract
North Carolina
What's position hierarchy in an employment contract?
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.
N'kia N.
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.
Employment
Employment Contract
New York
What should be included in my employment contract?
I am a small business owner looking to hire an employee for the first time. I have never written an employment contract before, so I am unsure of what should be included in the contract to ensure that it is legally binding and protects both the employee and me. I am looking for advice on what should be included in the contract to ensure that my interests and those of my employee are adequately protected.
Donya G.
Hello, Congratulations on your business. Here are some things that need to be in the agreement - amount you will pay them, when you will pay, the term of the employment, confidentiality, non solicit. Since you have never done this before, I would like to suggest that you hire an attorney to get it done to ensure it is done correctly. I am a NY attorney with over 20 years of experience. I assist small businesses like yours with their employment, vendor, investment and all their contract needs. I would love to assist you. You can contact me on the Contracts Counsel website or on my personal page - Donya Gordon Looking forward to talking to and working with you Sincerely Donya Gordon
Employment
Employment Contract
Washington
Can my employer change the terms of my employment contract without my consent?
I have been working for a company for the past three years, and my employment contract clearly outlines my job responsibilities, salary, and benefits. However, recently my employer informed me that they are planning to make changes to my contract, including reducing my salary and removing certain benefits. I am concerned about the legality of these changes and whether my employer can modify the terms of my contract without my consent.
Merry K.
I'm sorry to hear about this proposed change. Whether or not your employer can make such changes unilaterally depends almost entirely on how your contract is written. For example, if your contract clearly states that you are an "at will" employee, your employer can not only make whatever changes it wants, but can also discipline you or terminate you with no reason at all and only a one second advance notice. If it's not an "at will" contract, there may be a paragraph or two that addresses amendments to the agreement - eg, some such contracts may say that an employer can make changes with two weeks advance written notice; another may say that changes will be negotiated in advance between employer and employee. You may want to have an employment attorney, such as myself, review your contract as well as any recent correspondence you may have received from your employer. You may also want to try to very quietly try to find out whether or not other employees are possibly in the same boat as you - it's possible that the employer is cutting back on some benefits to save money, rather than laying off or terminating some or all of their employees. Good luck to you - and if you'd like to reach out to me, you can find me through ContractsCounsel.com or on WSBA.org Please be aware that the above information is provided for educational purposes only, and no attorney/client relationship has been formed Merry A. Kogut WSBA #16153
Employment
Employment Contract
Georgia
Can a company withhold a performance bonus if I leave before the payout date?
I recently resigned from my job, and in my employment contract, there was a provision for a performance bonus to be paid out at the end of the year. However, the payout date is a few months away, and I am concerned that the company may try to withhold the bonus since I am no longer employed with them. I want to know if they have the legal right to do so, or if I am still entitled to receive the bonus based on my performance during my time of employment.
Jerome L.
This is a great—and very common—question. Whether the company can legally withhold your performance bonus after resignation depends heavily on how your employment agreement is written and how the bonus is classified. Key Factors to Consider: 1. Is the Bonus Discretionary or Earned? If your contract defines the bonus as discretionary, the employer generally has the right to decide whether to pay it and can condition it on continued employment. If the bonus is based on meeting specific performance goals or metrics, and those have been satisfied, it may be considered earned—even if the payment date is in the future. 2. Does the Contract Require You to Be Employed on the Payout Date? Many agreements include language stating the employee must be actively employed on the bonus payout date. If such a clause exists, the company may be within its rights to withhold the bonus, even if the performance was completed. 3. What Is the Bonus Period? If your bonus was based on a performance period that has already ended (such as a calendar or fiscal year), and you met your goals, you may have a stronger case for claiming the bonus as earned compensation. Georgia-Specific Note: In Georgia, employment is at-will, and courts generally uphold the terms of a written employment agreement. However, Georgia courts have also recognized that earned wages (which can include bonuses if not discretionary) must be paid. If the bonus is performance-based and the company has paid similar bonuses under the same conditions in the past, you may have grounds to assert that the payment is owed. What You Can Do: Review your employment agreement and any bonus policy documents closely. Look for phrases like “discretionary,” “earned,” and “must be employed on the payout date.” If the language is unclear, you may want to consult an attorney to evaluate whether the company is legally permitted to withhold the bonus—or if you may have a claim based on how the bonus was structured and earned. If you would like help reviewing your agreement, I’d be happy to assist.
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