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California generally gives you four years to sue over a written contract and two years to sue over an oral agreement. This deadline usually begins when the other party breaks the agreement, even if negotiations continue afterward. Reach out to our employment attorney in Orange County for legal assistance.
A four-year filing period for an obligation or liability “founded upon an instrument in writing” is established in California Code of Civil Procedure section 337. Examples include:
A document’s title is less important than whether its written terms establish the obligation being enforced. Emails, policies, or several related documents may collectively support a written-contract claim, depending on their language and how the parties expressed their agreement.
An oral contract can be enforceable even though nothing was formally signed. Lawsuits over a contract “not founded upon an instrument of writing” must typically be pursued within two years under California Code of Civil Procedure section 339. This deadline may apply when the agreement arose through a conversation or verbal promise.
The person bringing the claim must still prove the agreement’s material terms, each party’s obligations, and the breach. Messages, payment records, witness testimony, and conduct consistent with the promise may help establish what the parties agreed to.
The clock ordinarily starts when the breach occurs. If an employer promised to pay a bonus on March 1 and withheld it when it became due, March 1 would mark the beginning of the filing period. The date can become less clear when a contract requires recurring payments or ongoing performance.
Each missed installment may create a separate breach with its own deadline. Additionally, a complete refusal to perform may affect the timeline differently from a series of underpayments.
You may have additional time to file a lawsuit if you could not reasonably have discovered the breach when it occurred or if the other party concealed what happened.
For example, an employer may have withheld commissions while providing records that falsely showed you were paid correctly. A court may consider when you learned, or reasonably could have learned, that the payment terms were violated.
Legal incapacity and certain other circumstances can also pause the filing period. These exceptions are narrow, and continued negotiations or assurances that payment is coming usually do not change the original deadline.
If your employer failed to pay a promised commission, bonus, severance amount, or other compensation, you may have rights to other claims beyond a breach of contract lawsuit. The same conduct may also violate California wage laws or support retaliation, discrimination, or wrongful termination. Each claim can have a different filing period and may require a separate administrative step before you can file a lawsuit.
For example, a discrimination or retaliation claim under California’s Fair Employment and Housing Act generally requires you to file a complaint with the California Civil Rights Department within three years of the unlawful conduct. After receiving a right-to-sue notice from the CRD, you generally have one year to file the lawsuit. An Orange County breach of contract lawyer can identify every claim, determine the applicable deadlines, and which path offers the strongest chances of recovering compensation.
Waiting can narrow your options. Call Aegis Law Firm at (949) 379-6250 or contact us online for a free consultation about an employer’s failure to honor your employment agreement.