What happens when an employee continues to work after the employee’s contract expires

Some employers assume that when an employee continues to be employed after the expiration of his or her employment agreement, the employee automatically becomes an employee at will whose employment can be terminated at any time. That may not be the case.

If a written employment contract expires and is not formally renewed, and the employee has continued to perform the same functions and to receive the same compensation as was received under the expired contract, then in some states there may be a presumption that the parties have mutually agreed to a new contract that contains the same provisions as the old agreement.

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