When you get a job offer, especially in today’s labor market, you can easily feel like you are walking on air. The problem is that, in employment relationships, as in shared entrepreneurship projects, the job can begin with big promises that never materialize. If you have an employment contract, you are in better shape than most people are. At least, this way, your employer’s promises are in writing. If your employer does not fulfill the promises that they made in the contract, you can file a breach of contract lawsuit in court. The mere fact that the possibility of a lawsuit exists is usually enough to persuade your employer to resolve the dispute, because employment lawsuits are expensive.
Of course, employers, especially large companies, are often in a position to intimidate employees out of exercising their legal rights. The Bozeman breach of contract lawyers at HKM Employment Attorneys LLP can help you figure out if your employer has breached the terms of your employment contract and can represent you in any subsequent negotiations or litigation arising from the contract dispute.
Elements of an Employment Contract
An employment contract is a legally binding agreement between an employer and an employee regarding work that the employee will perform in exchange for payment from the employer. The term “employment contract” applies whether the worker qualifies as an employee for tax purposes, that is, with a W-9 tax form, or whether the worker is an independent contractor who receives a 1099 form. Beyond the basic framework of work in exchange for pay, employment contracts differ substantially from each other; individuals and companies have the right to sign legally binding agreements in which they agree to do almost anything, unless it is something illegal.
In general, employment contracts include the following elements:
- The employee’s position title and job duties
- The employee’s rate of pay and the schedule of payment
- Employer-provided insurance benefits
- Paid time off, if any, and the procedures for using it
- Other employer-provided compensation, such as bonuses, employer-provided housing, transportation, or stipends for these
- The duration of the employment contract
- Procedures for renewing the contract, if it is renewable
- Procedures for early termination of the contract
- Dispute resolution clauses
The dispute resolution clauses of the employment contract are the least interesting to read, but if a dispute arises, they are the most important. It is more fun to read about all the money and perks you will get from your job than it is to read legal boilerplate, but if your employer is as full of empty promises as most people who think they are about to profit financially are, you should read every word of the boilerplate, because it holds the key to enforcing your right to get the money and perks.
From an employee’s perspective, the ideal dispute resolution clause says something like, “The courts of Montana have jurisdiction to rule on disputes arising from this contract.” In a court of law, the employer and employee are on equal footing, and if the court issues an unfair decision, you have the right to file an appeal. Some employment contracts require the employer and employee to engage in arbitration outside of court before or instead of facing off against each other in a lawsuit. Before you sign the contract, you should try to negotiate for the right to bring a lawsuit arising from the contract, but if your employer will not budge, it is not worth walking away from the job offer; no one can afford to do that these days. If arbitration is your only option, you should have the Bozeman employment lawyers at HKM Employment Attorneys LLP represent you in arbitration.
How to Prevail in a Breach of Contract Lawsuit
In a civil lawsuit, including but not limited to breach of contract litigation, the burden of proof is on the plaintiff to prove that its claims are true. The standard of evidence in breach of contract litigation is called a preponderance of the evidence, which means that it is more likely than not that the plaintiff’s statements are true and that the plaintiff’s interpretation of events is correct. This is a lower standard of evidence than what criminal courts require; in a criminal trial, the prosecution must persuade the jury beyond a reasonable doubt that the defendant’s actions fit all the elements of the definition of the charge. The reason for this lower standard of evidence is that, in civil litigation, only money is at stake. If a civil court wrongfully rules in favor of the plaintiff and the defendant pays damages, the defendant can appeal the ruling, and the appeals court can order the plaintiff to return the money that the defendant paid pursuant to the damages award.
A plaintiff in a breach of contract dispute must prove the following claims in order to get a ruling in his or her favor:
- The plaintiff and the defendant signed a legally valid contract. The contract was in force at the time the alleged breach occurred.
- The plaintiff fulfilled its contractual obligations, except where the defendant’s actions made this impossible, but the defendant breached the contract by failing to act in accordance with at least one of the provisions of the contract.
- The plaintiff suffered financial losses as a direct result of the defendant’s breach of contract.
Proving the necessary claims in a breach of contract dispute sounds simpler than it is. Most of the time, it takes two to sabotage a contractual relationship. The defendant might argue that you were the first to breach the contract. Your employer might also argue that you did not follow the procedures for repairing a breach, as indicated in the contract. For example, the defendant might claim not to have known that it was in breach of the contract until after you filed the lawsuit. The employer might also argue that its breach of contract was due to a force majeure event, such as a natural disaster, and not due to the defendant’s negligence.
Contact HKM Employment Attorneys About Breach of Contract
The Bozeman employment lawyers at HKM Employment Attorneys LLP, can give you advice about breach of contract claims. Contact the employment lawyers at HKM Employment Attorneys LLP in Bozeman, Montana, to set up a consultation.
