Employment Contract Template

An employment contract records what an employer and employee have agreed to: role, pay, schedule, benefits, and how the relationship can end. Easy Legal AI builds a clear agreement from a short set of questions.

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Core terms to include

Job title, duties, reporting line, and work location or remote policy
Compensation — salary or hourly rate, pay frequency, overtime eligibility
Bonuses, commissions, and equity, with the conditions to earn them
Benefits, paid time off, and any probationary period
Confidentiality and ownership of work product
Termination terms, notice, and any severance

At-will employment and the contract

Almost every US state presumes employment is at-will: either side may end it at any time for any lawful reason. A contract can preserve that status or replace it with a fixed term and defined grounds for termination. Mixing the two — promising a year of employment while claiming at-will status — invites disputes.

Montana is the notable exception, where employees who complete a probationary period can only be dismissed for good cause.

Employee or contractor?

Calling someone an employee in a contract triggers payroll tax withholding, minimum wage, and overtime rules. If the working relationship is really project-based and independent, an independent contractor agreement may fit better — but misclassification carries serious penalties, so the label must match reality.

A note on legal advice

Easy Legal AI is not a law firm and does not provide legal advice or attorney representation. This page and the documents it creates are self-help tools. Laws differ by state and change over time — for a high-value dispute or an unusual situation, have a licensed attorney in your state review the document before you rely on it.

Frequently asked questions

›Is an offer letter the same as an employment contract?

An offer letter summarizes key terms and usually confirms at-will status. An employment contract is more detailed and binding on both sides. Many employers use both.

›Are non-compete clauses enforceable?

It depends on the state. California, Minnesota, North Dakota, and Oklahoma largely ban them, and many other states limit their scope and duration. Confidentiality and non-solicitation clauses are more widely enforced.

›Does an employment contract need to be signed by both parties?

Yes. Both the employer's authorized representative and the employee should sign and keep a copy.

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