Understanding Employment Contracts under California State Law

In California, employment contracts, whether written, oral, or implied, outline the rights and duties of both the employee and employer. A contract serves as a protective measure to ensure that the terms of employment are clearly defined and honored by both parties.


Essentials of a Valid Contract:

  1. Mutual Consent: Both parties must clearly understand and agree to the essential terms.
  2. Offer and Acceptance: One party makes an offer and the other accepts without alterations.
  3. Consideration: There’s something of value exchanged, often the employee’s services for compensation.
  4. Lawful Object: The contract’s purpose must be legal under state law.
  5. Capacity: Both parties must have the ability to enter into a contract, meaning they’re of legal age and mentally competent

What is a Breach of Contract?

A breach of contract occurs when one party fails to fulfill any of its contractual obligations, whether expressly stated or implied. In the context of employment law, some common breaches by employers include:


  • Not paying the agreed-upon salary or wages.
  • Changing the terms of employment without the employee’s consent.
  • Failing to provide promised benefits.
  • Wrongfully terminating an employee in violation of the contract terms.

Compensation for Breach of Employment Contract

When an employer breaches an employment contract, the aggrieved employee has a right to seek remedies and compensation. The extent and nature of the compensation depend largely on the specifics of the breach and the damages suffered by the employee. Commonly, compensatory damages aim to put the employee in the position they would have been if the breach had not occurred. This can include back pay for lost wages, lost benefits, and even potential future earnings in cases of wrongful termination. In some instances, an employee may also be entitled to consequential damages, which are unforeseen losses resulting directly from the breach. Moreover, if the breach is found to be intentional or malicious, punitive damages might be awarded as a way to punish the employer and deter similar misconduct in the future. It’s crucial to have an adept legal team, like the professionals at Miracle Mile Law Group, to accurately assess and advocate for the full range of compensation you deserve.

How Miracle Mile Law Group Can Help

If you believe your employer has breached your employment contract, Miracle Mile Law Group can provide:


  • Evaluation: Our attorneys will review your contract, help you understand your rights, and evaluate the strength of your case.
  • Negotiation: We can negotiate with your employer on your behalf, striving to find an amicable resolution.
  • Representation in Court: If negotiations fail, we will diligently represent your interests in court to ensure you get the justice you deserve.


The consequences for employers breaching contracts can be significant, including monetary damages, reinstatement of the employee, or specific performance of the contract.

How Miracle Mile Law Group Can Help

Establishing a breach of contract requires demonstrating certain key elements to the court. Firstly, it must be proven that a valid contract existed between the parties. This can be done by presenting the written agreement, or, in cases of oral contracts, evidence of the mutual understanding and terms. Secondly, the aggrieved party must show that they upheld their end of the bargain or had a valid reason not to. Thirdly, it’s essential to illustrate that the other party failed to fulfill their contractual obligations. This breach can be a result of non-performance, incomplete performance, or delay in performance. Lastly, the aggrieved party must provide evidence that they suffered damages as a direct result of the breach. Documents, communications, testimonies, and financial records often serve as critical evidence in substantiating these claims. Given the complexities involved, having experienced legal representation, like that of Miracle Mile Law Group, can be instrumental in effectively proving a breach of contract.


Determining whether you have a viable breach of contract case involves assessing several key factors:


  • Existence of a Contract: Firstly, you need to establish that a valid contract, whether written, oral, or implied, existed between the parties involved. This means that there was mutual agreement on specific terms and an exchange of value (consideration).
  • Your Performance: It must be evident that you either fulfilled your obligations under the contract or had a valid reason for not doing so (such as a prior breach by the other party).
  • Breach by the Other Party: You need to identify how the other party failed to meet their contractual obligations. This could be through non-performance, incomplete or defective performance, or late performance.
  • Damages: It’s crucial to establish that you suffered measurable damages as a result of the breach. These damages might be financial, but they can also be other types of harm that were a foreseeable result of the breach.
  • Documentation and Evidence: Any documentation like written agreements, email exchanges, payment receipts, or any other relevant communications can significantly strengthen your claim. This evidence can demonstrate the existence of the contract and the nature of the breach.
  • Statute of Limitations: Ensure you’re within the legal timeframe to file a claim. Breach of contract claims are subject to a statute of limitations, which varies by jurisdiction. In California, for example, the limit is generally four years for written contracts and two years for oral contracts.
  • Consider External Factors: In some situations, external factors like force majeure clauses, which account for unforeseeable circumstances (e.g., natural disasters), may absolve a party of liability. Ensure no such clauses or conditions apply to your case.


Lastly, it’s always advisable to consult with an attorney experienced in contract law. They can evaluate the details of your situation and provide guidance on the strength of your case and the best course of action. If you believe you have a breach of contract case, the professionals at Miracle Mile Law Group can offer expert insight and representation tailored to your unique circumstances.

Contact Us For a Free Consultation Regarding Breach of Contract

Understanding the nuances of employment contracts and the implications of a breach can be complex. That’s why you need a dedicated, experienced team on your side. If you think your employment contract has been breached or if you have questions about your employment rights, don’t hesitate. Contact Miracle Mile Law Group today. Let us be your advocates in the complex world of California employment law.

Contracts come in different forms meaning they can be either implied, oral, or written. Implied contracts occur when there is some pre-existing relationship between the two parties that gives rise to a contract.

If you signed an employee handbook at the beginning of your employment, you most likely entered into an implied contract with your employer. Oral contracts are formed whenever the employee and the employer verbally agree to form a contract.

Lastly, written contracts are formed when the employer and the employee have a signed written agreement. While its normal for upper management employees, such as CEOs, to have an employment contract inlace, it is much less likely for lower level employees to have such agreements. In other words, average employees rarely have written contracts in place.

When the employer breaks a promise to his or her employee when there is a valid employment contract, it is said that the employer has breached the contract.

Employment contracts often tend to come with the language that states the employee may only be fired for “good cause.” This means that your employer can not fire you for any reason, rather they must have a strong argument in favor of your termination.
    • The toughest hurdle often times in identifying your rights in a breach of contract case is determining whether a valid contract existed in the first place. A lawyer can help you prove the existence of a contract with your employer because often times, contracts with your boss rarely ever come in writing. Another problem that arises when employees fail to retain a lawyer is that you may have more than just a breach of contract case. For example, take the man who got fired without receiving his pay. At first glance, this seems like a simple breach of contract case. However, the man may also have a claim for failure to pay itemized wage statements, a claim for wrongful termination in violation of public policy, and other claims associated with the employers failure to pay wages.