What is an Employment Agreement?

Key Elements in an Employment Agreement

An employment agreement typically includes the following key elements:

• Position and title: The job title, description, and tenure of the position.
• Compensation: Rate of pay, hours of work, and overtime provisions.
• Benefits: Vacation time, health insurance, and other benefits.
• Confidentiality: Restrictions on the use and disclosure of confidential information.
• Non-compete and Non-solicitation: Agreements limiting an employee from competing with the employer or soliciting its customers or employees.
• Restrictive Covenants: Agreements prohibiting employees from competing with or soliciting the employer’s customers and employees after the termination of their employment.

Understanding Employee Rights and Obligations

The employment agreement is used to clarify the roles and responsibilities of each party. For an employee, an agreement establishes expectations for performance and sets the parameters for discipline. It also serves as a reference to ensure the employee is offered fair treatment and the agreed upon benefits are respected. An employment agreement can also protect an employee’s right to privacy, intellectual property or, in some cases, provide reimbursement in the event of a workplace injury.

Legal Considerations in Drafting Employment Agreements

Employment agreements are subject to labor and employment laws, making it essential for employers to consider applicable laws when drafting an agreement. Employers should ensure their agreements comply with all local, state, and federal laws. An experienced employment attorney can help employers navigate the complexities of the employment agreement process and ensure that it is in compliance with applicable laws.