An Administrator's Guide to California Private School Law

Chapter 4 - Employment Contracts And Separation Of Employees

Identifying which employees are mandated reporters and having them sign the acknowledgment form before they begin working at the school should be a part of every school’s hiring process.

C HAPTER 4 - E MPLOYMENT C ONTRACTS A ND S EPARATION O F E MPLOYEES I NTRODUCTION The employment contract is the critical legal document governing the employment relationship. It is “a contract by which one, who is called the employer, engages another, who is called the employee, to do something for the benefit of the employer or a third person.” 391 In essence, an employee promises to perform work for the employer in exchange for the employer’s promise to pay wages and other benefits. Employment contracts may either be “at-will,” for a specified term, and/or for cause. As will be discussed in greater detail below, an at-will employment relationship is one that can be terminated by either party, at any time, for any reason so long as the reason is not illegal. A contract for a specified term contains a specified period of employment and may be terminated according to limited reasons set out by statute or in accordance with the contract itself. A for cause contract can be a contract for a specified term that may not be terminated except for “cause.” The employer must establish “cause” consistent with what is set out in contract or by statute before terminating the employment of a “for cause” employee. Section 1

A T -W ILL E MPLOYMENT

Section 2

A. A T -W ILL C ONTRACT D EFINED California law presumes that if an employment contract does not have a specified term of employment, then the employment relationship is “at-will,” meaning that it may be terminated by either the employer or employee, at any time, for any reason and with or without cause. 392 A contract with a “specific term” is defined as a contract for a period of greater than one month. 393 In general, at-will employment is the opposite of “for cause” employment. Although at-will employment is a presumption under the law, it is a rebuttable presumption. This means that if an employer has policies or practices that contradict at-will employment, a court or arbitrator may conclude that an employee’s employment was not at-will after all. Schools thus need to be aware of the circumstances that can defeat at-will employment. 394

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 104