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Employment Agreement Disputes in California

Protecting Your Rights Under Employment Contracts and Executive Agreements

Employment agreements define the rights and obligations between employers and employees. Whether you are an executive, professional, founder, salesperson, or key employee, the terms of your employment agreement can significantly impact your compensation, career opportunities, equity interests, severance rights, and legal protections.

Disputes often arise when employers or employees disagree about contract terms, compensation, termination rights, restrictive covenants, equity awards, bonuses, commissions, or severance obligations.

At Peter Law Group, we represent employees, executives, entrepreneurs, and businesses throughout California in employment agreement disputes, negotiations, and litigation.

What Is an Employment Agreement Dispute?

An employment agreement dispute occurs when one party alleges that the other has violated the terms of an employment-related contract.

These disputes may involve:

  • Employment agreements
  • Executive employment contracts
  • Offer letters
  • Commission agreements
  • Bonus plans
  • Equity compensation agreements
  • Severance agreements
  • Confidentiality agreements
  • Non-solicitation provisions
  • Partnership and founder agreements

Even when a formal employment contract does not exist, disputes can arise from written policies, compensation plans, emails, offer letters, and other workplace communications.

Common Types of Employment Agreement Disputes

Compensation and Bonus Disputes

Many employment contract disputes involve disagreements over compensation.

Examples include:

  • Unpaid bonuses
  • Disputed commission calculations
  • Changes to incentive plans
  • Earned compensation withheld after termination
  • Equity vesting disputes
  • Deferred compensation disagreements

These cases often require a detailed review of compensation plans, employment agreements, and company policies.

Executive Employment Agreements

Executives frequently negotiate customized employment contracts that address:

  • Salary and benefits
  • Equity compensation
  • Change-in-control protections
  • Severance benefits
  • Performance incentives
  • Termination rights

Disputes can arise when an employer attempts to alter compensation, terminate an executive without honoring contractual obligations, or deny negotiated benefits.

Severance Agreement Disputes

Employers may offer severance agreements when employment ends. These agreements often contain provisions regarding:

  • Severance payments
  • Equity treatment
  • Releases of legal claims
  • Non-disparagement obligations
  • Confidentiality provisions

Disputes may arise regarding eligibility, payment amounts, compliance with agreement terms, or the enforceability of certain provisions.

Commission Agreement Disputes

California employers frequently compensate employees through commission-based plans.

Common disputes include:

  • Failure to pay earned commissions
  • Retroactive compensation changes
  • Disputed sales credit
  • Customer ownership conflicts
  • Post-termination commission payments

California law imposes specific requirements regarding commission agreements and wage payments.

Equity Compensation and Stock Option Disputes

Startups and growth-stage companies often use equity compensation to attract and retain talent.

Disputes may involve:

  • Stock options
  • Restricted stock units (RSUs)
  • Equity vesting schedules
  • Repurchase rights
  • Founder equity allocations
  • Change-of-control transactions

The financial stakes in these matters can be substantial, particularly when a company experiences rapid growth or a liquidity event.

Restrictive Covenant Disputes

California generally prohibits many forms of post-employment non-compete restrictions.

However, disputes still arise involving:

  • Non-solicitation provisions
  • Confidential information
  • Trade secret protection
  • Customer relationships
  • Competitive business activities

Employers and employees often disagree about what conduct is permissible following separation from employment.

Breach of Employment Contract Claims

A breach of employment contract claim may arise when either party fails to comply with contractual obligations.

Examples include:

Employer Breaches

  • Failure to pay agreed compensation
  • Failure to provide severance benefits
  • Failure to honor equity agreements
  • Improper termination under contractual provisions
  • Violation of negotiated employment terms

Employee Breaches

  • Disclosure of confidential information
  • Violation of contractual obligations
  • Misuse of company property
  • Failure to comply with negotiated restrictions

Each case depends heavily on the specific language of the agreement and the surrounding facts.

Employment Agreements and California Law

California employment law provides significant protections that cannot always be waived through private agreements.

Even if a contract contains restrictive language, courts may evaluate:

  • Whether the agreement complies with California law
  • Whether provisions are enforceable
  • Whether compensation terms satisfy wage and hour requirements
  • Whether restrictive covenants violate public policy
  • Whether termination provisions are lawful

Careful legal analysis is often required before determining whether a contract provision can be enforced.

Signs You May Need an Employment Agreement Attorney

You may benefit from legal counsel if:

  • Your employer refuses to honor your contract
  • You are negotiating a new executive employment agreement
  • You are being offered a severance package
  • You have questions about equity compensation
  • Your commissions have not been paid
  • You are accused of violating a restrictive covenant
  • You are involved in a founder or executive separation dispute
  • Your employment agreement contains unclear or conflicting language

Addressing these issues early can often help avoid costly litigation.

How Peter Law Group Can Help

Employment agreement disputes often involve a combination of contract law, employment law, compensation structures, equity arrangements, and business considerations.

Peter Law Group assists employees, executives, founders, entrepreneurs, and businesses with:

  • Employment agreement review
  • Executive contract negotiations
  • Severance negotiations
  • Compensation disputes
  • Commission claims
  • Equity compensation disputes
  • Restrictive covenant matters
  • Employment contract litigation

Our goal is to help clients protect their rights, resolve disputes efficiently, and achieve practical business-focused outcomes.

Contact Peter Law Group

If you are involved in an employment agreement dispute or need guidance regarding an executive contract, compensation agreement, severance package, or equity arrangement, contact Peter Law Group to discuss your options.

FAQs

Can I sue my employer for violating my employment agreement?

In many circumstances, yes. The available remedies depend on the specific contract terms and the nature of the alleged breach.

Are non-compete agreements enforceable in California?

California generally prohibits most post-employment non-compete agreements, although certain exceptions may apply.

What should I do before signing a severance agreement?

Consider having the agreement reviewed by an employment attorney before signing. Severance agreements often contain important legal and financial provisions.

Can my employer change my commission plan?

Employers may have some flexibility to modify future compensation arrangements, but disputes frequently arise when changes affect commissions that have already been earned.

What if my equity compensation is denied after termination?

Equity disputes often depend on the governing plan documents, employment agreements, vesting schedules, and company policies. An attorney can help evaluate your rights.