Can you sue an employee for breach of contract?
Asked by: Lottie Prosacco | Last update: October 22, 2025Score: 4.7/5 (68 votes)
Like any contract between two consenting individuals, employment contracts are legally enforceable in New York. As long as the contract is valid, an employer can sue their employee for breaching it.
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.
What to do if an employee breaches a contract?
You can briefly discuss with a lawyer over the phone/in person for free consultation. Call your local bar association and they will recommend an appropriate law office nearby. In the meantime, start documenting anything you think is a breach of contract on their end.
How much can you sue for a 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 I sue someone 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.
S1 E3: Can an employer sue an employee for breach of contract?
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.
What compensation can you get for breach of contract?
Compensatory Damages
Lost profits, Cost of cover (i.e., obtaining substitute goods or services), Repair or replacement costs, and. Incidental expenses incurred due to the breach.
Is breach of contract hard to prove?
The short answer is yes. Breaches of oral contracts are harder to prove, but the contracts are absolutely enforceable. Breach of oral contract elements are the same as for written contracts. The hardest part of proving a breach of contract for an oral agreement is proving that the contract existed and was valid.
Can I sue my employer for breach of contract?
Whether your employment contract is written, implied, or oral, you have the right to sue for breach in California. This applies whether your employer has wrongfully terminated you or denied promised or implied benefits. You'll need an attorney who's an expert in California employment law to handle your case.
Is it worth going to small claims court for $500?
Conclusion: Going to small claims court may be worth it for $500, but it will determine how you weigh your costs versus benefits. At a minimum, it is worth it to send a demand letter.
When can an employer sue an employee?
If an employee breaches a contract or fails to fulfill legal obligations, the employer usually has grounds to bring a lawsuit. An example is when an employee shares confidential trade secrets in violation of an NDA (Non-Disclosure Agreement), causing financial damage to the company.
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.
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.
How long after breach of contract can you sue?
For a written contract, you generally must file your lawsuit within 4 years of when the agreement is broken. For a verbal contract, you must file it within 2 years of when the agreement is broken.
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 is the penalty 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.
What qualifies as a breach of contract?
A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation, such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court.
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.
What happens if an employee breaches an employment contract?
The Potential Consequences of an Employment Contract Breach
These damages could include unpaid wages, compensation for lost benefits, and even punitive damages in some cases.
What are the consequences of breach of contract?
The party who suffers the breach is entitled to receive from the other. Compensation for any loss or damage caused to him. Which naturally arose in the usual course of things from such breach. or which the parties knew, when they made the contract, to be likely to result from the breach of it.
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.
What is a reasonable breach of contract?
This failure can take various forms, such as failing to deliver goods or services as promised, not completing work within the agreed timeframe, delivering defective or substandard goods, or not paying for goods or services rendered. For a breach of contract to occur, a contract must have existed in the first place.
What 3 elements must a breach of contract claim?
- Valid Contract – There is a valid or binding contract.
- Performance – The claimant performed according to the contractual terms or has a valid excuse for nonperformance.
- Breach – A breach occurred due to the failure of the defendant to perform their agreement.
Can you sue for pain and suffering for breach of contract?
They are often frustrated to learn that pain and suffering damages are not permitted for breach of contract cases in California. An award of damages for breach of contract is intended to give the injured party the benefit of his bargain.
How do I claim a breach of contract?
- There is a legally binding contract. ...
- The other party has failed to perform their duties under the contract. ...
- You have suffered loss as a result of the breach. ...
- The breach occurred within the last 6 years. ...
- Collating and preserving evidence. ...
- Reserving your rights. ...
- Taking legal advice.