An employment contract can define your compensation, job responsibilities, severance rights, and future career limitations. While some employees assume these agreements are non-negotiable, many terms can and should be carefully reviewed before signing. If you are presented with an offer letter or formal contract, consulting with an experienced Employment Lawyer can help ensure your interests are fully protected.
Castronovo & McKinney, LLC focuses exclusively on employment law and advises professionals throughout New Jersey on employment agreements, restrictive covenants, and compensation disputes. From its Morristown office, the firm serves clients in Bergen County, Essex County, Middlesex County, Morris County, and surrounding communities.
Key Provisions in Employment Contracts
Employment agreements often include detailed provisions addressing:
- Base salary and bonus structure
- Commission plans and incentive compensation
- Equity awards or stock options
- Termination rights and severance terms
- Restrictive covenants such as non-compete and non-solicitation clauses
- Confidentiality and intellectual property ownership
Understanding how these provisions interact is essential, particularly when disputes arise after termination.
“For Cause” Termination Clauses
Many contracts define circumstances under which an employer may terminate employment “for cause.” These provisions often impact eligibility for severance pay, bonuses, and equity vesting.
Ambiguous definitions of “cause” can lead to disputes, particularly if an employer attempts to deny compensation by asserting misconduct. Careful review of contractual language and supporting documentation is often necessary.
Non-Compete and Restrictive Covenants
Restrictive covenants are common in employment contracts, particularly for executives and professionals with access to confidential information. Under New Jersey law, non-compete agreements must be reasonable in scope, duration, and geographic reach.
Overly broad restrictions may be unenforceable or subject to judicial modification. Negotiating reasonable limitations at the outset can prevent costly disputes later.
Bonus and Commission Disputes
Disagreements frequently arise over unpaid bonuses or commissions. Employers may rely on discretionary language in compensation plans to deny payment, even when performance targets were met.
Analyzing plan documents, historical practices, and contractual obligations can help determine whether compensation has been wrongfully withheld.
Severance and Post-Employment Rights
Some employment contracts include guaranteed severance packages or notice provisions. Others are silent, leaving severance subject to negotiation. Reviewing these terms before termination can clarify expectations and strengthen negotiating leverage.
Employees should also consider how post-employment obligations—such as confidentiality or non-solicitation clauses—may affect future career opportunities.
Dispute Resolution Clauses
Many employment agreements contain arbitration clauses or forum selection provisions. These clauses determine how and where disputes will be resolved. Understanding their implications is essential before signing.
Arbitration may limit certain procedural rights, including jury trials. Evaluating the benefits and risks of such provisions can influence long-term strategy.
Strategic Review Before Signing
Employment contracts often shape professional opportunities for years. A proactive review can identify unfavorable provisions, suggest revisions, and reduce the likelihood of future disputes.
Castronovo & McKinney, LLC provides detailed contract analysis and strategic guidance tailored to each client’s career goals and risk tolerance.
Contact Castronovo & McKinney, LLC
Castronovo & McKinney, LLC
71 Maple Ave
Morristown, NJ 07960
United States
Phone: 973-920-7888
Email: tom@cmlaw.com
Hours:
Monday – Friday: 9:00 AM – 6:00 PM
Saturday – Sunday: Closed
The firm proudly represents clients throughout New Jersey, including Bergen County, Essex County, Middlesex County, Morris County, and the cities of Hackensack, Newark, New Brunswick, and Morristown.
