EmploymentQuestion 1031 of 1605

An employment agreement contains a clause the employer knows is legally unenforceable under California law. Under Labor Code §432.5, requiring an employee to sign it is:

a.A federal offense only
b.Unlawful for the employer to knowingly require
c.Perfectly acceptable business practice
d.Required for all new hires

Explanation

Labor Code §432.5 makes it unlawful for an employer to require an employee or applicant to agree, in writing, to any term or condition the employer knows to be prohibited by law. Contractors should ensure their employment documents do not contain provisions that violate California law.

Law Reference: Labor Code §432.5

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Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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