Employment Agreement (US) by OLL
This Employment Agreement outlines the terms and conditions of employment between an employer and an employee based in US. It covers key aspects such as position, compensation (salary or hourly), benefits, work location, confidentiality, intellectual property assignment, and restrictive covenants like non-solicitation and is created by OLL's team of legal experts.
Employment Agreement
This Employment Agreement ("Agreement") is entered into as of [effective date] ("Effective Date"), by and between [employer name], a [employer entity type] organized under the laws of [employer formation state], with its principal place of business at [employer address] ("Employer" or "Company"), and [employee name], an individual residing at [employee address] ("Employee").
This is a full employment agreement. For simpler roles without severance or restrictive covenants, consider using an offer letter instead.
Employment and At-Will Status
Employer agrees to employ Employee, and Employee agrees to be employed by Employer, on the terms and conditions set forth in this Agreement. Employee's employment is at-will, meaning that either party may terminate the employment relationship at any time, with or without cause or notice, subject to applicable law. No representative of Employer has any authority to enter into any agreement contrary to the foregoing, except by a written agreement signed by an authorized officer of Employer.
For Montana employees: modify to address post-probationary termination standards under Montana's Wrongful Discharge From Employment Act.
Position, Duties, and Reporting
Employee is hired for the position of [job title] in the [department] department, reporting to [manager name/title]. Employee shall perform all duties and responsibilities associated with this position and such other reasonably related duties as may be assigned from time to time consistent with business needs. Employee agrees to devote full working time and best efforts to the performance of duties and to comply with all Company policies and procedures.
Ensure duties described are consistent with exempt/non-exempt classification intent. Significant role changes may require reclassification review.
Compensation
3.1 Base Compensation
Option A (Salary - Exempt): Employee shall receive an annual base salary of [annual salary amount], payable in accordance with Employer's standard payroll schedule, less required withholdings and lawful deductions.
Option B (Hourly - Non-Exempt): Employee shall receive an hourly rate of [hourly rate], payable in accordance with Employer's standard payroll schedule, less required withholdings and lawful deductions. Employee must accurately record all hours worked and will receive overtime pay as required by applicable law.
Select Option A or B based on exempt/non-exempt classification. Delete the unused option before finalizing.
3.2 Bonus and Incentive Compensation
Employee may be eligible to participate in bonus or incentive compensation programs, subject to the terms and conditions of applicable plan documents as adopted and amended from time to time. Participation in any bonus or incentive plan does not guarantee any specific bonus payment and is subject to the applicable plan terms and continued employment through any required vesting or earning period, to the extent permitted by applicable law.
Benefits and Leave
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About this template
What is this template?
This is a formal employment contract for US-based staff that explicitly states the at-will nature of the relationship. It contains a DTSA immunity notice and specific carve-outs for the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act. It is not a simple offer letter, as it includes detailed IP assignments and restrictive covenants.
When should you use it?
Use this template when hiring full-time staff in the United States where confidentiality and ownership of work product are primary concerns. Use an offer letter instead for simpler roles that do not require detailed severance terms or post-employment non-solicitation obligations.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Employment and At-Will Status | Establishes that either party may terminate the employment relationship at any time with or without cause or notice. |
| 3.1 | Base Compensation | Provides options for either an annual salary for exempt employees or an hourly rate for non-exempt employees. |
| 7.4 | DTSA Immunity Notice | Notifies the Employee of criminal and civil immunity under 18 U.S.C. 1833(b) for specific protected trade secret disclosures. |
| 8.1 | Work Product Assignment | Irrevocably assigns all inventions and works of authorship created during employment to the Employer. |
| 9 | Restrictive Covenants | Prohibits the solicitation of Employer's customers and employees for a defined period, such as 12 months, following termination. |
| 11.1 | EFAA Carve-Out | Permits the Employee to bring sexual assault or harassment disputes in court despite any arbitration provision under 9 U.S.C. ch. 4. |
| 12 | Governing Law | Subjects the agreement to the laws of a specific state, excluding conflict of laws principles. |
Who it's for
- a US employer hiring an exempt salaried employee or non-exempt hourly worker
- a company requiring an assignment of all work product and inventions to the entity
- an employer seeking to enforce non-solicitation restrictions after an employee leaves
- parties requiring a choice between binding arbitration or court litigation for disputes
How long it runs and how it's signed
Law it's drafted under
United States note
This version is drafted for US law generally. Contract, employment and consumer rules vary by state — for example on non-competes and at-will employment. Tell GitLaw which state applies and it adjusts the draft.
Frequently asked questions
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