Can I sue my employer for breach of contract?

Asked by: Miss Rubie Rau MD  |  Last update: September 29, 2025
Score: 4.8/5 (22 votes)

Breaches of employment contracts can lead to major disruptions in people's income as well as suits for damages on either side of the contract. Employees who have been unfairly terminated or treated in a way that violates their employment contract have the right to seek redress for this issue.

What happens if an employer breaches an employment contract?

One of the most immediate consequences of breaching an employment contract is financial liability. If found guilty, employers may be required to pay damages to the affected employee. These damages could include unpaid wages, compensation for lost benefits, and even punitive damages in some cases.

What qualifies as a breach of contract?

Breach of contract happens when one party to a valid contract fails to fulfill their side of the agreement. If a party doesn't do what the contract says they must do, the other party can sue. example: unpaid loan. You lend a friend $15,000. You both make a verbal agreement that your friend will pay you within 6 months.

Is it worth suing for breach of contract?

The Value of the Contract: Consider whether the breach resulted in substantial financial or other losses. If the damages are minimal, the costs of litigation may outweigh the potential recovery. For example, suing over a minor inconvenience or slight delay may not be worth the effort.

Can I get compensation for breach of contract?

Material breach of contract

Following a material breach, the innocent party may seek legal help to resolve the issue. Legal remedies may include suing for damages and, in some cases, terminating the contract. Open discussions and mediation can help both parties to resolve the situation before it escalates.

Can I Sue My Employer For Breach Of Contract? - CountyOffice.org

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How much compensation can you get for breach of contract?

In a breach of contract case, damages typically cannot exceed four times the actual losses. However, the exact amount depends on the specifics of your case. Consult with a lawyer to determine the potential damages you may recover.

How do you prove a breach of contract?

Once the plaintiff proves that a valid contract existed, they must show that they upheld their part. After that, the plaintiff must show that the defendant did not fulfill their obligations. And finally there must be evidence of actual damages that the plaintiff suffered as a result.

How hard is it to win a breach of contract lawsuit?

There is ample opportunity for disappointment, which often leads to breach of contract litigation. While breach of contract happens all the time, very few cases become a winning lawsuit. Long story short, it's hard to win a breach of contract lawsuit.

How to sue an employer for breach of contract?

In order to prevail in a claim for breach of employment contract, an employee must be able to demonstrate (a) a binding agreement, and (b) the employer failed to comply with the terms. They must also prove damages due to the employer's failure to uphold the agreement.

What damages are awarded for breach of contract?

5 Types of Damages That May Be Awarded for a Breach of Contract
  • Compensatory Damages. These damages are meant to compensate the non-breaching party for any direct losses they experienced due to the breach of contract. ...
  • Liquidated Damages. ...
  • Nominal Damages. ...
  • Restitutionary Damages. ...
  • Punitive Damages.

What is the punishment for breach of contract?

As a result, the default remedy available for a breach of contract is monetary damages . Generally, these damages are limited to what is listed in the contract and, unlike damages from tort cases, courts do not award punitive damages for breaches of contract.

How to fight breach of contract?

In a contract dispute over a breach of contract, you should raise as many legal defenses as possible, including "affirmative defenses." It's usually not enough to simply deny legal wrongdoing; you must respond with every plausible argument that justifies your position.

What are the tests for breach of contract?

The first and most-defining element of a breach of contract claim is the first element, the existence of a contract – whether an oral contract or a written contract. Second, the plaintiff must show that he or she performed the duties under the contract.

When can your employer sue you?

Typically, an employee is not held liable for ordinary carelessness or negligence in the performance of their duties. However, if an employee acts outside the scope of reasonableness, causing damage or injury to either property or persons, an employer may be able to sue an employee for negligence.

How serious is breach of contract?

The Legal Consequences of Breaching a Contract

Depending on the severity of the breach, you could be looking at anything from a small fine to jail time. If you're found guilty of breaching a contract, the court will order you to pay damages to the other party.

What are compensatory damages for breach of employment contract?

Compensatory damages are the amount you lost due to the breach. In addition, expectation damages are what you would have received had your contract not been breached. For example, if you were wrongfully terminated, you may receive the amount of your lost wages.

How do I sue for breach of contract without a lawyer?

Small claims court: For cases below a statutory amount that is usually less than $10,000, parties may go to court themselves and avoid hiring a contract lawyer. For small business owners, avoiding costly business litigation can be as important as winning breach of contract lawsuits.

Do I need a lawyer for breach of contract?

Don't hesitate to seek legal help if you think someone may have breached a contract with you, or if you're in the middle of an agreement dispute in California.

What is the liability for breach of contract?

1 Generally, liability for breach is defined as civil liability that is derived from a violation of a contractual obligation or a failure to render the performance that is due under a contract. Thus, once a breach occurs, liability arises.

What remedy is awarded most often for breach of contract?

Compensatory damages are the most common remedy for breached contracts. These damages aim to compensate the non-breaching party for the financial losses they suffered due to the breach.

How long after breach of contract can you sue?

Common statutes of limitations: Personal injury: 2 years from the injury. Breach of a written contract: 4 years from the date the contract was broken. Breach of an oral contract: 2 years from the date the contract was broken.

Can you claim damages for breach of contract?

In order to sue successfully for damages arising out of a breach of contract, you must demonstrate that there was a contract in existence, that the other side failed to perform their part of the bargain satisfactorily and that you suffered a loss as a result.

How much can you sue for breach of contract?

Breach of contract damages generally cannot exceed four times the actual losses, but everything depends on the facts of your specific case. Your lawyer can identify whether you can recover these damages in your case.

What is the standard of proof for breach of contract?

The appropriate standard of proof for a breach, even when the alleged breach consists of misrepresentation or concealment of a material fact (in an insurance claim), is a preponderance of evidence rather than clear, cogent, and convincing evidence.

How do I file a claim for breach of contract?

You can file a lawsuit to recover your damages. You begin by filing a complaint in the appropriate civil court. A complaint is a technical legal document that describes the problem and explains the case to the judge and the other party. The complaint must then be served, i.e., delivered to the defendant.