An Administrator's Guide to California Private School Law

Chapter 4 - Employment Contracts And Separation Of Employees

Defining duties too narrowly can be problematic as well. For example, if a contract states that a teacher will be assigned to a specific grade level the school may not have sufficient flexibility to adapt to changes mandated by fluctuations in enrollment and other issues.

LCW Practice Advisor

E. C OMPENSATION This provision sets forth the employee’s wages. For exempt employees, the provision should provide the employee’s monthly or annual salary. Schools should consider stating the monthly salary for at-will exempt employees, rather than the annual salary, because an annual salary may give an employee the impression that he or she is guaranteed employment for the entire year, which may conflict with the at-will nature of an employment agreement. An employee may interpret the annual salary to mean that he or she is entitled to earn the annual salary amount across the year. For non-exempt employees, the employment agreement should provide the employee’s hourly rate of pay. If the employee receives different hourly rates of pay for different types of work, such arrangement should be specified in this provision. The compensation provision should also state when the payment of wages will be made. For example, a school may specify that the employee will be paid semi-monthly beginning on a particular pay period. Schools may also wish to include details concerning when salary and compensation review and adjustments may be made. It is also important for the employment agreement to specify that if the employee or the school terminates the employee’s employment, the employee will not be paid any wages beyond those earned as of the last date of employment. For at-will agreements, this statement maintains the at- will nature of the compensation plan. F. B ENEFITS This provision allows a school and employee to negotiate and record the benefits to which the employee is eligible during the term of the contract. Possible benefits include pension and other retirement plans, profit sharing plans, savings or similar plans, individual or group life insurance, accidental death and dismemberment insurance, medical insurance, dental insurance, vision insurance, short term and long term disability insurance, sick leave (including salary continuation arrangements), holidays, expense reimbursements, vacation time, tuition remission and any other benefits that may be offered by a school. LCW Practice Advisor

Frequently, benefits are included in a contract by reference to an employee handbook. Language regarding benefits should be carefully worded since contracts are typically entered into in the spring and health insurance premiums are not set until the fall.

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 115