Breach of Contract

There are different ways to form a contract between a worker and their employer. These are often called employment agreements or employment contracts. While most employees will not have any employment agreement or contract with an employer because they are employed at will, certain promises by your employer may create contractual obligations. 

An employment agreement can cover many different aspects of the employment relationship: 

• The specific dates or length of employment 

• Salary and/or bonus 

• Benefits, and/or perks, including stock options 

• Limitations on when and why an employee can be terminated (i.e., “cause”) 

• Severance 

• Confidentiality, non-competition and non-solicitation obligations 

When one side does not honor that agreement, it is called a “breach” of the contract. 

Not in every case, but sometimes you must have a written, signed contract to be able to enforce it. Florida law requires that an agreement which is incapable of being performed in one year must be a written document. This is also referred to as the Statute of Frauds. 

For example, an employment contract which guarantees your employment for two years, unless terminated for cause, must be in writing to be enforceable. However, in some cases, a verbal contract can be enforceable in Florida. 

Yes, and it depends on whether the contract is written or verbal. Depending on the circumstances, you may have as little as two years from the breach to file a lawsuit or as long as five years to sue for a breach of contract. 

Which statute of limitations applies can be tricky, so if your employer breached an agreement with you, do not delay seeking legal advice on your case because if you miss your deadline, you may be unable to collect what is owed to you. 

There are several elements you will need to prove: 

1. You have a valid contract. This includes addressing questions like: 

• Was there an offer? 

• Was the offer accepted? 

• Was consideration (i.e. something of value) provided for the acceptance? 

• Are all material terms included in the contract? 

• Was there a meeting of the minds? 

1.  Your employer breached the contract. You will need to show that: 

• You fulfilled your obligations under the contract 

• All conditions required for your employer to perform their obligations had occurred 

• Your employer failed to do something essential which the contract required 

• You need to be very sure that you did not breach any terms of the employment contract 

1. You suffered damages. The breach by your employer needs to have caused you to suffer some kind of tangible loss, such as: 

• Unpaid wages, including contractual bonuses and commissions 

• Denial of stock purchase 

• Not receiving promised incentives, like severance or health insurance 

There are different remedies available: 

• Recession: Your contract is cancelled, and both parties return to the “status quo.” This makes sense when you just want out of the contract. 

• Damages: The most common remedy, compensation for what you have lost due to the breach. This is usually money. 

• Special or consequential damages: Money losses that flow from the breach (available in limited situations). 

• Nominal damages: If you can prove a breach but suffered no damages, you could receive a judgment for nominal damages (e.g., one dollar). 

Important limitations: 

• No Emotional Damages: Emotional damages stemming from a breach are not recoverable 

• No Punitive Damages: These are not allowed in breach of contract claims 

• Attorneys’ Fees: Parties must pay their own litigation costs and attorneys’ fees, unless recoverable by law or if the contract provides otherwise 

If you decide to file a breach of contract lawsuit with the Court, you will have very specific duties to fulfill. This can include a duty to look for replacement work or otherwise minimize your damages caused by the breach. There are also many defenses that either party can assert to try to get out of the contract or avoid its obligations in the contract. 

As you can tell, although a breach of contract claim seems simple on the surface, it can become complicated quite quickly. If your employer failed to fulfill the terms of your employment contract, we urge you to contact an experienced employment lawyer to discuss your options and fight for your legal rights.