How do I create employment agreements?

Define position, compensation, benefits, work schedule, IP assignment, confidentiality, termination terms, and any state-specific requirements. iContract can help structure the agreement, but jurisdiction-specific requirements should be confirmed before use.

An employment agreement formalizes the employer-employee relationship. Essential clauses:

1. Position & duties — title, reporting line, primary responsibilities. 2. Start date — first day of employment. 3. Compensation — salary or hourly rate, payment frequency, bonus structure. 4. Benefits — health, dental, 401(k), PTO, holidays, parental leave. 5. At-will employment (in 49 states) — either party can terminate at any time, with or without cause. Required wording in most states. 6. Schedule & location — full/part time, hours, remote/in-office, location. 7. IP assignment — work product belongs to employer. 8. Confidentiality / NDA — protect company info during and after employment. 9. Non-solicitation — can't poach clients/employees for X months after leaving. 10. Non-compete — banned by FTC in 2023; check state laws (CA, ND, OK ban entirely; others allow limited). 11. Termination — notice period, severance (if any), final paycheck rules. 12. Governing law & disputes — state law, arbitration vs court. 13. Acknowledgment of policies — handbook, code of conduct. 14. Signatures + date.

  • California: must include final wage payment timing (immediate on termination), accrued PTO payout required, strict noncompete ban.
  • New York: WARN Act notice for layoffs, NYC pay transparency laws.
  • Massachusetts: noncompete must include garden leave (50%+ pay during restriction).
  • Texas: more employer-friendly but Texas-specific arbitration rules.

Independent contractor vs employee: be sure of classification. The IRS, DOL, and state agencies penalize misclassification heavily.

Use iContract's guided employment-agreement workflow as a starting point, and confirm the requirements that apply in the employee's jurisdiction before signing.

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