Human Capital Management Blog

Strategies for HCM Professionals

Hiring in California? You Might Need to Update Your Employment Contracts!

Do you hire in California? If so, you’ll need to take another look at your employment contracts (including ones that will be modified or extended in the new year) to make sure that they adhere to legislation taking effect January 1, 2017.

The legislation in question prevents employment contracts from including provisions that apply another state’s laws, or require appearing in another state’s court system, if the employee resides and works primarily in California. However, these rules don’t apply if the employee is represented by an attorney, or if signing the contract is not a condition of employment.

Employees can void contract provisions that don’t meet these new standards, in which case the dispute would be handled by a California court, under California law.

If you hire employees who reside and/or work in California, make sure that you review any employment contracts that will be signed, modified, or extended after the rule takes effect. You should also consider reviewing any modifications with your attorney.

Want to Learn More?

To read the full text of this law, click here.


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