Employment Agreement Generator

A complete employment agreement must include: (1) job title and duties — specific role and responsibilities; (2) compensation — base salary, bonus structure, equity, and benefits; (3) start date and term — at-will or fixed-term; (4) confidentiality clause — protecting trade secrets and business information; (5) IP assignment — who owns work product created during employment; (6) non-solicitation — restrictions on poaching employees or clients post-termination; (7) governing law — which state's law applies. Non-compete clauses are banned in California (Cal. Bus. & Prof. Code §16600), Minnesota, North Dakota, and Oklahoma. In all other states, non-competes must be reasonable in scope, duration (typically 1–2 years), and geographic area.

It depends on the state. Non-compete clauses are completely unenforceable in California (Cal. Bus. & Prof. Code §16600 — void for all employees), Minnesota (Minn. Stat. §181.988, effective 2023), North Dakota (NDCC §9-08-06), and Oklahoma (15 Okla. Stat. §219A). They are heavily restricted in Colorado (employees earning >$123,750/year only), Illinois ($75,000+/year), Massachusetts (12-month maximum; garden leave required), Oregon ($113,241+/year), Virginia ($73,320+/year), and Washington ($100,000+/year). In most other states, non-competes are enforceable if they have a reasonable time limit (typically 1–2 years), reasonable geographic scope, and protect a legitimate business interest.

No federal law requires a written employment agreement. All 50 states (except Montana) are at-will employment states, meaning employment can be terminated by either party at any time for any legal reason — with or without a written agreement. However, certain elements must be in writing: non-compete and non-solicitation clauses must be written to be enforceable in most states; equity grants (stock options, RSUs) require written agreements; certain state-specific disclosures (e.g., California wage theft prevention notices) must be provided in writing. Written agreements are strongly recommended for all salaried employees to prevent disputes.

An offer letter is a brief document confirming employment terms (salary, title, start date, at-will status) — typically 1–2 pages, not a full contract. An employment agreement is a comprehensive contract (typically 5–15 pages) that includes all terms of the offer letter plus: detailed IP assignment clauses, confidentiality and non-disclosure obligations, non-solicitation restrictions, severance terms, arbitration clauses, and governing law. Startups typically use offer letters for most employees; employment agreements are standard for executives, senior technical employees, or any role with significant access to IP or trade secrets.

Verbal employment agreements can be legally binding, but written agreements are strongly recommended. Key reasons: (1) non-compete and non-solicitation clauses must be in writing to be enforceable in virtually all states; (2) equity compensation (stock options, RSUs) requires written grant agreements; (3) IP assignment is much more enforceable with a signed written agreement; (4) written agreements prevent "he said/she said" disputes about agreed terms. California requires employers to provide written disclosure of certain terms (wage notice) under the Wage Theft Prevention Act. New York requires a written notice of pay rate and pay day for all employees.