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Employment agreement
Protect your business and employees by creating clear company policies for employees to follow. Let an attorney take the lead to create, revise, and customize your agreement.
Starts at
$1,399
Includes attorney guidance, revisions, and a custom template
Have questions? Call (855) 306-2319 for a free discovery call.
Why get attorney support from LegalZoom?
Predictable flat fee
Get dedicated attorney support to prepare your employment agreement for an affordable flat fee.
Experience you can trust
Our law firm LZ Legal Services co-counsels with experienced local attorneys to guide you step-by-step through the process and help prepare your state-specific agreement.
Fast and personalized service
Save time with one convenient place to find experienced attorneys, track document progress, and get the dedicated legal support you deserve.
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Tell us the details about your legal need, the state you live in, and how we can reach you.
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Our law firm LZ Legal Services co-counsels with local attorneys who are experienced in your legal issues to provide dedicated legal services. Easily schedule calls and track progress through your LegalZoom account.
Sit tight while your attorney does the rest
Your dedicated attorney will review your information then upload a customized document or recommendations to your account so you can download and sign or notarize, if necessary, to make it official.
Have questions? Call (855) 306-2319 for a free discovery call.
Why do companies need an employment agreement?
In many ways, an employment agreement serves as your first impression with any new employee. This is your chance to both let them know what to expect and what you'll expect from them in their time with your company.
Beyond any simple handshake or first meeting, however, a well-built employment contract is also a legally binding document that helps ensure you get what you need from new hires. Hiring a new employee is an investment, after all, and it only makes sense to protect that investment with a clear, up-front set of guidelines.
Key elements of an employment agreement
While the specifics of an employment contract change depending on the needs of the company, all employee contracts should typically contain certain elements:
Employee and employer details:
Information about both the employee and the employer, including full names and contact information.
Job description and responsibilities:
A clearly defined job title, job description, and any necessary information about the employee's intended responsibilities and job duties within the company.
Compensation and benefits:
A detailed outline of the employee's pay (salary or hourly rates), bonuses, and employee benefits, such as health insurance, paid leave, commute compensation, and more.
Non-disclosure agreement:
A provision to protect trade secrets and intellectual property owned by the company, with which an employee agrees to comply or face legal consequences.
Dispute resolution:
In case of any dispute between the employee and coworkers or the company itself, an employment contract should outline the resolution process available to disputing parties.
Termination conditions:
A clause outlining what happens if the employment relationship is dissolved, including information about severance pay and the termination process.
Employee and employer details:
Information about both the employee and the employer, including full names and contact information.
Job description and responsibilities:
A clearly defined job title, job description, and any necessary information about the employee's intended responsibilities and job duties within the company.
Compensation and benefits:
A detailed outline of the employee's pay (salary or hourly rates), bonuses, and employee benefits, such as health insurance, paid leave, commute compensation, and more.
Non-disclosure agreement:
A provision to protect trade secrets and intellectual property owned by the company, with which an employee agrees to comply or face legal consequences.
Dispute resolution:
In case of any dispute between the employee and coworkers or the company itself, an employment contract should outline the resolution process available to disputing parties.
Termination conditions:
A clause outlining what happens if the employment relationship is dissolved, including information about severance pay and the termination process.
6 reasons to consider a LegalZoom employment lawyer
As labor laws continue to change and become more complex, more and more companies turn to outside legal experts to help create their employment contracts. If you choose this path for your own company, you'll gain access to benefits such as:
Expert guidance on compliance:
The first test of any legal contract is whether it will hold up in court, and employment laws have a tendency of shifting suddenly. By working with one of LegalZoom's employment attorneys, you gain access to years of experience navigating the labyrinth of state and federal labor compliance.
Tailor-made agreements:
Your business has unique needs and preferences---both of which should be reflected in the employee agreements you use. Unlike with a cookie-cutter contract template, our legal experts will take the time to perfect every detail of your employee contracts, from industry-specific language to clauses outlining company culture and values.
Dispute resolution:
In most cases, contract disputes can be avoided altogether with a clear, ironclad employment contract. When such disputes do arise, however, it's best to have pre-planned strategies and process in place to make sure they're resolved in a way that's favorable to your company.
Your employment attorney will work with you to outline what to do in these situations, including negotiation or mediation processes and how to handle disciplinary actions.
Expert guidance on compliance:
The first test of any legal contract is whether it will hold up in court, and employment laws have a tendency of shifting suddenly. By working with one of LegalZoom's employment attorneys, you gain access to years of experience navigating the labyrinth of state and federal labor compliance.
Tailor-made agreements:
Your business has unique needs and preferences---both of which should be reflected in the employee agreements you use. Unlike with a cookie-cutter contract template, our legal experts will take the time to perfect every detail of your employee contracts, from industry-specific language to clauses outlining company culture and values.
Dispute resolution:
In most cases, contract disputes can be avoided altogether with a clear, ironclad employment contract. When such disputes do arise, however, it's best to have pre-planned strategies and process in place to make sure they're resolved in a way that's favorable to your company.
Your employment attorney will work with you to outline what to do in these situations, including negotiation or mediation processes and how to handle disciplinary actions.
Protected business interests:
One of the most powerful functions of any employment contract is the ability to protect your business' interests, trade secrets, and even customer relationships. Doing so in a way that complies with ever-changing state and federal law, however, can be a challenging process.
When you hire an employment attorney, they'll incorporate rock-solid protection clauses within your company's employment contracts, including non-disclosure agreements and non-solicitation clauses.
Updates and legal adaptations:
As your company grows and evolves, it's inevitable that you'll need to revisit your employee contracts to ensure they still reflect its values and needs. And, whether that means new guidelines on bonus structures, codes of conduct, or intellectual property clauses, an experience labor attorney can help ensure that those changes happen quickly and in a way that complies with the most current labor laws.
Risk management:
As a rule, the best time to solve a problem is before it ever arises. Rather than waiting for a problem to happen and then reacting, a qualified labor lawyer will work with you to predict potential sources of risk. Then, you and your personal attorney will develop plans to address such situations if and when they occur---potentially saving you the cost of litigation entirely.
One of the most powerful functions of any employment contract is the ability to protect your business' interests, trade secrets, and even customer relationships. Doing so in a way that complies with ever-changing state and federal law, however, can be a challenging process.
When you hire an employment attorney, they'll incorporate rock-solid protection clauses within your company's employment contracts, including non-disclosure agreements and non-solicitation clauses.
Updates and legal adaptations:
As your company grows and evolves, it's inevitable that you'll need to revisit your employee contracts to ensure they still reflect its values and needs. And, whether that means new guidelines on bonus structures, codes of conduct, or intellectual property clauses, an experience labor attorney can help ensure that those changes happen quickly and in a way that complies with the most current labor laws.
Risk management:
As a rule, the best time to solve a problem is before it ever arises. Rather than waiting for a problem to happen and then reacting, a qualified labor lawyer will work with you to predict potential sources of risk. Then, you and your personal attorney will develop plans to address such situations if and when they occur---potentially saving you the cost of litigation entirely.
Types of employment contracts
When most people think of employee contracts, they think of the basic document most workers sign when beginning a new job. Still, different types of employment contracts work best in different situations, and your attorney will help you choose the ones you'll likely need.
Permanent
Also known as "indefinite" employee agreements, permanent contracts work with either full-time or part-time employment and come without a set end date.
Fixed-term
In addition to the start date common with most employee contracts, a fixed-term contract also sets a predetermined end date for employment. These contracts are often used for project-based or seasonal work.
Casual employment
Casual employee agreements do not guarantee any set hours, but instead are used for employees who work on an as-needed basis. This arrangement can mean greater flexibility for employer and employee alike.
Freelance
Freelance employee agreements, alongside independent contractor agreements or consulting agreements, are an important tool for businesses that occasionally need extra hands but don't want to officially hire another employee.
This type of contract can be especially complex, so it's best to have an attorney-vetted template on hand.
When most people think of employee contracts, they think of the basic document most workers sign when beginning a new job. Still, different types of employment contracts work best in different situations, and your attorney will help you choose the ones you'll likely need.
Permanent
Also known as "indefinite" employee agreements, permanent contracts work with either full-time or part-time employment and come without a set end date.
Fixed-term
In addition to the start date common with most employee contracts, a fixed-term contract also sets a predetermined end date for employment. These contracts are often used for project-based or seasonal work.
Casual employment
Casual employee agreements do not guarantee any set hours, but instead are used for employees who work on an as-needed basis. This arrangement can mean greater flexibility for employer and employee alike.
Freelance
Freelance employee agreements, alongside independent contractor agreements or consulting agreements, are an important tool for businesses that occasionally need extra hands but don't want to officially hire another employee.
This type of contract can be especially complex, so it's best to have an attorney-vetted template on hand.
Legal considerations of creating an employment contract
Over the last several decades, government organizations on the state and federal levels have continuously worked to pass laws intended to support and protect workers. These bills, such as the Americans with Disabilities Act or Fair Labor Standards Act, have helped standardize employee treatment nation-wide.
For employers, understanding these various laws---or having the right attorney to help navigate them---can mean the difference between an unenforceable employment contract and one that benefits both your company and its employees.
Before putting any employment agreement into use, make sure it does not include any of the following:
Discriminatory clauses:
Under no circumstances can any part of your employment contract discriminate against individuals based on race, religion, sex, gender, age, disability, or other types of protected characteristics.
Non-compete agreements (except in specific cases):
Although still legal for certain types of individuals, such as C-suite level employees, most employees can no longer be subjected to a non-compete clause.
Vague language or terms:
While not technically illegal, an employment contract that uses vague language, either intentionally or accidentally, leaves room for legal challenges later on.
Overly-controlling non-disclosure agreements:
Companies are well within their rights to protect intellectual property and trade secrets. Still, overly restrictive NDAs may open the door to legal issues.
Retaliatory clauses:
Regardless of what else it contains, no clause in an employment contract can retaliate against employees for exercising legally protected rights.
While this list covers some of the most common pitfalls of employment agreements, the full list is far more extensive and should be discussed with an attorney before finalizing any contract.
Over the last several decades, government organizations on the state and federal levels have continuously worked to pass laws intended to support and protect workers. These bills, such as the Americans with Disabilities Act or Fair Labor Standards Act, have helped standardize employee treatment nation-wide.
For employers, understanding these various laws---or having the right attorney to help navigate them---can mean the difference between an unenforceable employment contract and one that benefits both your company and its employees.
Before putting any employment agreement into use, make sure it does not include any of the following:
Discriminatory clauses:
Under no circumstances can any part of your employment contract discriminate against individuals based on race, religion, sex, gender, age, disability, or other types of protected characteristics.
Non-compete agreements (except in specific cases):
Although still legal for certain types of individuals, such as C-suite level employees, most employees can no longer be subjected to a non-compete clause.
Vague language or terms:
While not technically illegal, an employment contract that uses vague language, either intentionally or accidentally, leaves room for legal challenges later on.
Overly-controlling non-disclosure agreements:
Companies are well within their rights to protect intellectual property and trade secrets. Still, overly restrictive NDAs may open the door to legal issues.
Retaliatory clauses:
Regardless of what else it contains, no clause in an employment contract can retaliate against employees for exercising legally protected rights.
While this list covers some of the most common pitfalls of employment agreements, the full list is far more extensive and should be discussed with an attorney before finalizing any contract.
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