Employment contracts often contain language that feels final and absolute. Some clauses aim to make workers feel they have no viable options if a dispute arises. You may naturally wonder whether you must accept them. Fortunately, Pennsylvania law gives you more protection than the contract suggests.
What can an employment contract restrict?
Employment contracts can lawfully restrict how workers resolve disputes. It can limit the timeframe within which you must bring a claim forward. In some cases, contracts include confidentiality provisions that restrict what you can disclose about the dispute or its outcome. These types of restrictions are generally permitted under Pennsylvania law, provided they are fair and clearly disclosed.
What is an arbitration clause?
Many employers include arbitration clauses in job contracts. These clauses require workers to resolve disputes outside of court. Instead of a judge, a private arbitrator manages the proceedings. Employers often prefer this process because it tends to be less public. In some situations, the process may also work in their favor.
Are arbitration clauses legal in Pennsylvania?
In most cases, yes. Pennsylvania courts consistently uphold arbitration agreements under the Pennsylvania Uniform Arbitration Act. The Federal Arbitration Act also applies to many employment contracts. However, not every clause is automatically enforceable.
When is a contract clause invalid?
Courts do not automatically enforce every clause in an employment contract. Instead, they evaluate the following factors:
- The clause disproportionately favors the employer
- The clause was concealed within fine print
- The clause attempts to eliminate all available legal recourse
- There was insufficient time to review the terms before signing
Judges scrutinize the fairness of the terms and whether both parties genuinely agreed to them. Finding one or more of these issues in a contract does not guarantee a specific outcome. However, it does give a court strong reason to question whether that clause should apply to your situation.
Protecting your rights as an employee
Your signature on a contract does not mean you surrendered all of your rights. Pennsylvania law sets boundaries on what employers can and cannot take away. If you believe a contract provision goes too far, review the agreement before signing or challenging it.
