An employment contract is meant to protect both the employer and the employee by setting clear expectations for the working relationship. When one side fails to live up to their end of the deal, the other side may have legal grounds to take action. This is known as a breach of contract.
If your employer has violated the terms of your employment contract, you may be entitled to compensation for the losses you have suffered as a result. Read on to learn more about how breach of contract claims work under Arizona employment law and what steps you can take to protect your rights.
How Employment Contracts Work in Arizona
Arizona is an at-will employment state. In simple terms, that means your employer can let you go at any time for almost any reason, and you can quit whenever you want. Neither side needs to give a specific reason.
That changes when a written contract is in the picture. Per ARS Section 23-1501, if you and your employer both signed an agreement that locks in a set period of employment and limits when termination is allowed, those terms take priority over the at-will default.
Employee handbooks and policy manuals can sometimes create a binding contract as well, but usually only if the document makes it clear that it is meant to serve as one. Simply showing up and doing the job is not enough on its own to create a contract under Arizona law.
What Counts as a Breach of an Employment Contract?
A breach occurs when one party fails to fulfill an obligation that is spelled out in the contract without a valid legal excuse for doing so. In the employment context, this can take many different forms depending on what the agreement covers.
Some common examples of employer breaches include:
- Terminating an employee before the contract’s agreed-upon end date without cause
- Failing to pay the wages and other forms of income outlined in the agreement
- Not providing benefits that were promised as part of the contract
- Changing the terms of employment without the employee’s consent
- Violating non-compete agreement provisions
This is not meant to be an exhaustive list. If you’re unsure whether your case qualifies, reach out to an employment attorney for legal guidance.
What Remedies Are Available for a Breach of Contract?
If you can prove that your employer breached your employment contract, Arizona law provides several forms of relief depending on the nature and severity of the breach:
- Compensatory damages: This is the most common remedy. It is designed to put you in the financial position you would have been in if the contract had been honored.
- Specific performance: In some cases, a court may order the breaching party to fulfill their obligations under the contract rather than simply paying damages.
- Rescission: This cancels the contract entirely and aims to restore both parties to the position they were in before the agreement was made.
- Attorney’s fees: Arizona law allows the prevailing party in a breach of contract case to recover reasonable attorney’s fees.
Punitive damages are generally not available in breach of contract cases unless the breach also involved fraud or intentional misconduct.
How Long Do I Have to File a Breach of Employment Contract Claim in Arizona?
The deadline for filing depends on the type of contract involved:
- Written employment contracts carry a one-year statute of limitations under ARS Section 12-541(3), which is much shorter than the six-year window that applies to other types of written contracts in Arizona
- Oral and implied contracts allow three years under ARS Section 12-543, though proving that an unwritten employment agreement existed can be difficult since Arizona law generally requires these agreements to be signed by both parties
- Claims against government employers may require you to file a notice of claim within as little as 180 days, with a lawsuit following within one year
These deadlines can vary significantly depending on the situation, so reaching out to a lawyer early on is the safest way to protect your rights and ensure you do not miss your window.
Contact a Phoenix Employment Lawyer at Houk Employment Attorneys to Schedule an Initial Consultation
A breach of your employment contract can cost you income and career opportunities that you were counting on. If you believe your employer has failed to honor the terms of your agreement, an employment attorney can review your contract and help you pursue the compensation you are owed from there.
Contact an employment lawyer in Phoenix, Arizona, from Houk Employment Attorneys, for a consultation to get started with your case. Call at (480) 569-2377. You can receive some initial legal advice about what you should do next at that time.