12 Legal Rights Every Employee Should Know Before Signing a Contract

An individual signing an employment contract.

Before signing an employment contract, you need to understand your legal rights to protect yourself from unfair treatment and future disputes. Many employers draft agreements that prioritize their interests, often leaving employees unaware of critical protections they are entitled to under federal law and state laws. Knowing your rights ensures you don’t unknowingly waive important benefits like overtime pay, workers’ compensation benefits, unemployment insurance, and reasonable accommodations. If you’re confused about your rights as an employee, don’t hesitate to reach out to our employment lawyers for an enlightening discussion about your situation.

Your contract defines your employment relationship, covering details like your job title, salary, employment period, and possible restrictions through non-compete agreements or confidentiality agreements. If you overlook key terms, you could face legal challenges down the road, from wrongful termination to disputes over unpaid wages or severance packages.

Before signing, take the time to review each clause carefully. Understanding these 12 essential rights will empower you to negotiate fair terms and secure a contract that aligns with your best interests.

1. Right to a Written Employment Contract

A written employment contract clearly defines the terms of employment, preventing misunderstandings and legal disputes. This document should outline key details like job title, employment period, monthly salary, overtime pay, and employment terms. Employees must ensure that the contract specifies all necessary details to avoid ambiguity. Federal and state laws require certain disclosures, including non-disclosure agreements (NDAs), non-compete clauses, and expense policies. Before signing, employees should consult an employment attorney to understand their legal rights and potential legal challenges.

2. Right to Minimum Wage and Overtime Pay

Under the Fair Labor Standards Act (FLSA), employers must pay at least the minimum wage and compensate overtime hours at a higher rate for nonexempt employees. Employees should review their contract to ensure their hourly pay, overtime pay, and unpaid wages are properly accounted for. Employers who fail to adhere to wage laws can be sued for unpaid wages. Employees should maintain records of their working hours to support their claims in case of disputes.

3. Right to Workers’ Compensation Benefits

Employees injured on the job are entitled to workers’ compensation benefits under employment law. This includes medical treatment, lost wages, and continued employment if they can perform their duties with reasonable accommodations. The contract should specify the process for filing a workers’ compensation claim and detail coverage options. Employees should verify the employer’s compliance with state laws governing workers’ compensation.

4. Right to Protection Against Discrimination

Federal laws, such as Title VII of the Civil Rights Act, protect employees from unfair treatment based on national origin, marital status, and other protected characteristics. If employees experience discriminatory practices, they can file a lawsuit. The employment contract should affirm the company’s commitment to fair treatment and adherence to anti-discrimination laws. Employees should report any discrimination to human resources or seek legal assistance.

5. Right to Protection from Sexual Harassment

Under federal law, employers must maintain a zero-tolerance attitude towards sexual harassment. Contracts should outline the company’s sexual harassment policy and the reporting process. Employees should ensure that their employment contract includes protection against quid pro quo harassment, a common workplace issue where job benefits are contingent on sexual favors. If an employer fails to act, employees can seek legal remedies through an employment attorney.

6. Right to Health Benefits and Medical Leave

Employees should verify their health insurance coverage under their contract. The Family and Medical Leave Act (FMLA) grants eligible employees unpaid leave for serious health conditions, childbirth, or family emergencies without risking job loss. The contract should clarify health benefits, including medical leave, medical expenses, and whether the employer contributes to health insurance. Employees should review legal protections under state and federal laws.

7. Right to Unemployment Benefits

If an employer terminates employees without a legal reason, they may qualify for unemployment benefits under unemployment insurance programs. The contract should explain the conditions for employment ends and whether the employer provides severance packages. Employees who feel they were subjected to wrongful termination should consult employment lawyers to file a wrongful termination lawsuit.

8. Right to Understand Employment Taxes

Many employees misunderstand their employment taxes, particularly those classified as independent contractors under independent contractor agreements. Independent contractors do not receive unemployment benefits, workers’ compensation, or health insurance, which traditional employees are entitled to. The contract should clarify tax responsibilities, particularly for employees switching to a new job or working under venture capital-funded startups.

9. Right to Intellectual Property Protection

Employees working in creative or technical fields should ensure that their intellectual property rights are safeguarded. Many contracts include non-disclosure agreements (NDAs) or non-compete agreements, restricting an employee’s ability to use their ideas elsewhere. Employees must carefully review any confidentiality agreement or non-compete clause to ensure they are not unfairly limiting their job security or future employment opportunities.

10. Right to a Clear Trial Period and Performance Expectations

Some contracts include a trial period where employees can be dismissed for poor performance without legal recourse. Employees must clarify the structured process for evaluation and ensure the contract defines fair treatment standards. If an employer dismisses an employee unfairly, they may be held liable for wrongful termination. Employees should maintain documentation of their performance and communication with supervisors.

11. Right to Review Expense Policies and Benefits

Employees should understand their expense policies, especially if they incur work-related costs. The contract should outline reimbursement procedures for travel, meals, and equipment. If policies are unclear, employees should seek clarification before signing. Employers should provide clear guidelines to avoid disputes regarding legal challenges related to unpaid wages.

12. Right to Access Personnel and Employee Files

Employees have the right to access their personnel file and request copies of relevant documents. This includes performance reviews, employment terms, and records of any complaints filed. Employees should regularly check their employee files for inaccuracies. In case of disputes, they should present these documents to an employment attorney for assistance.

Protect Your Rights with Bourassa Law Group

Understanding these 12 legal rights empowers employees to make informed decisions before signing an employment contract. Federal and state laws provide significant legal protections to ensure fair treatment in the workplace. If an employee suspects their rights are being violated, seeking guidance from employment lawyers can prevent serious issues. Bourassa Law Group offers free consultations to help employees navigate the legal framework of their contracts.

Contact us today to ensure your rights are protected and that you receive the benefits you deserve.

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