Employment agreement template (US)

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An employment agreement is a written contract between an employer and an employee that sets out the job, pay, duties, confidentiality and how the relationship ends. In the US, many employment relationships are at will unless the contract says otherwise. Copy the template, fill the brackets, and have a licensed attorney in your state review it before use.

US federal rules as of 31 October 2026. State law governs contracts and varies widely.

At a glance

  • An offer letter is short; an employment agreement is longer and more binding. See the job offer letter template.
  • Wage and hour rules apply no matter what the contract says. The FLSA sets federal minimum wage and overtime for covered workers, and the higher state rate applies where state law is higher.
  • Agreements cannot waive anti-discrimination protections.
  • Keep signed copies and give one to the employee.

Template

EMPLOYMENT AGREEMENT

This agreement is made on [DATE] between [COMPANY LEGAL NAME], of [ADDRESS] ("Company") and [EMPLOYEE NAME], of [ADDRESS] ("Employee").

1. POSITION AND START DATE
Employee will work as [JOB TITLE], reporting to [MANAGER TITLE], starting on [START DATE]. The primary work location is [LOCATION / REMOTE IN STATE]. Duties may be reasonably adjusted by the Company.

2. AT-WILL EMPLOYMENT [DELETE IF NOT AT WILL OR IF STATE LAW DIFFERS]
Employment is at will. Either party may end it at any time, with or without cause or notice, subject to applicable law. Nothing in this agreement creates a guarantee of employment for any period.

3. PAY
Company will pay [SALARY/HOURLY RATE], [EXEMPT / NON-EXEMPT], paid [FREQUENCY]. Overtime for non-exempt employees will be paid as required by law. Pay is subject to applicable withholding. Company will review pay [FREQUENCY].

4. BONUS AND BENEFITS
[BONUS TERMS, OR "None"]. Employee may take part in the Company's benefit plans on the terms of those plans, which the Company may change.

5. HOURS AND TIME OFF
[SCHEDULE]. Paid leave: [POLICY OR LAW REFERENCE].

6. CONFIDENTIALITY
Employee will keep Company confidential information private during and after employment and use it only for Company work. This does not limit Employee's rights to discuss pay or working conditions or to report violations of law to a government agency.

7. INVENTIONS AND WORK PRODUCT
Work Employee creates in the course of employment belongs to the Company, to the extent permitted by law. [STATE-SPECIFIC NOTICE IF REQUIRED].

8. RESTRICTIVE COVENANTS [OPTIONAL, ATTORNEY REVIEW REQUIRED]
[Non-solicitation / non-compete terms, if any, drafted to comply with state law.]

9. EXPENSES AND EQUIPMENT
Company will reimburse reasonable, approved business expenses. Employee will return Company property on request or when employment ends.

10. ENDING EMPLOYMENT
[NOTICE REQUIREMENT, IF ANY]. On separation Company will pay earned wages as required by state law. [SEVERANCE TERMS, OR "None"].

11. CONDITIONS
This offer is conditional on [PROOF OF WORK AUTHORIZATION (FORM I-9)], [BACKGROUND CHECK WITH SEPARATE WRITTEN NOTICE AND PERMISSION], [REFERENCES].

12. GENERAL
This is the entire agreement and may be changed only in writing signed by both parties. It is governed by the laws of [STATE]. If a provision is unenforceable, the rest remains in effect.

Company: [NAME, TITLE] [SIGNATURE] [DATE]
Employee: [NAME] [SIGNATURE] [DATE]

Check before using

  • Classification. If the person is not an employee, this is the wrong document. See contractor vs employee.
  • Pay. State the pay and whether the role is exempt or non-exempt. Use state minimums where higher.
  • Conditions. If you require a background check, use a separate stand-alone notice and permission as the FCRA requires. See conditional offer letter.
  • Form I-9. Section 1 is due no later than the first day of work, and Section 2 within three business days of the hire. See I-9 guide.
  • Restrictive covenants. State rules vary a great deal. Get attorney advice before including them.
  • Electronic signature. Use a method that records who signed and when. In LiveRec, see offer e-signature and storage.

FAQ

Do I need an agreement for every hire? No. Many employers use an offer letter plus policies. Use an agreement when terms are complex or senior.

Is a verbal agreement binding? It can be. Put terms in writing.

Sources

  • US Department of Labor, Wage and Hour Division, FLSA - https://www.dol.gov/agencies/whd/flsa (accessed 31 October 2026)
  • EEOC, Prohibited Employment Policies/Practices - https://www.eeoc.gov/prohibited-employment-policies-practices (accessed 31 October 2026)
  • IRS, Hiring Employees - https://www.irs.gov/businesses/small-businesses-self-employed/hiring-employees (accessed 31 October 2026)

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.