Employment Agreement
Standard employment contract for hiring full-time or part-time employees
Complexity
ComplexEstimated Time
~15 minutes
Best For
Small businesses and agencies
Good fit for:
- ✓Hiring full-time or part-time employees
- ✓Defining compensation, benefits, and duties
- ✓Establishing at-will employment relationships
Not recommended for:
- ✗Independent contractors (use Freelance/Consulting Agreement)
- ✗Simple temporary workers (still formalize)
Key Clauses
Important clauses included in this template and what they mean for you.
You can't work with their competitors for a period after this ends.
Neither side can try to hire the other's team members for a while.
Trial period where termination is easier for both sides.
Details about vacation, sick days, and other paid leave.
What can get you fired immediately without notice.
Compensation you receive if laid off without cause.
Work-related inventions belong to your employer.
Common Mistakes
Watch out for these pitfalls when using this template.
Why it matters:
WARNING: This limits your future work opportunities. Consider carefully before agreeing. California, North Dakota, and Oklahoma ban these clauses entirely. If you do agree, negotiate a shorter time period or narrower geographic scope. Only accept if the pay justifies the restriction.
How to avoid it:
Carefully review state restrictions and negotiate terms to align with your situation.
| State | Clause | Restriction |
|---|---|---|
| CA | Non-Compete | unenforceable |
| CA | Invention Assignment | Must exclude personal inventions per Labor Code 2870 |
| ND | Non-Compete | unenforceable |
| OK | Non-Compete | unenforceable |
Always verify current state laws before executing agreements. State laws change frequently, and some clauses may be unenforceable in certain jurisdictions.