Employment Contract Template (US)

No federal mandate. At-will employment is the default in 49 states (Montana §39-2-904 is the only just-cause state). However: NY Wage Theft Prevention Act §195.1, CA Labor Code §2810.5, MA G.L. c.149 §148 require a written wage notice at hire (not a full contract — but a signed contract satisfies the requirement). Federal law requires Form I-9 USCIS within 3 business days of start ($272-$2,701 fine per violation, 8 CFR §274a.10) + Form W-4 IRS withholding + state new-hire reporting within 20 days (PRWORA 42 USC §653a). For executives, sales staff with commissions, employees with equity grants, or anyone receiving confidential info / IP, a written contract is industry-standard. Pricing benchmark 2026: LegalZoom one-off $89 + Rocket Lawyer Business $39.99/mo + LawDepot Pro $33/mo + BambooHR Essentials $4.75/employee/mo + Gusto Plus $40 + $6/employee/mo + Rippling $8/user/mo + Workable Starter $189/mo + PandaDoc Essentials $19/user/mo — iFillPDF generates the SEC EDGAR Model Employment Agreement-grade contract + Form I-9 + W-4 onboarding pack for $0 with no per-seat fee.

At-will (49 states default) means either party can terminate the relationship at any time, for any lawful reason (or no reason), without notice. Exceptions: public-policy (firing for refusing illegal act / jury duty / whistleblowing — 43 states recognize), implied-contract (employee handbook promises — 38 states), covenant of good faith (11 states), and statutory protections (Title VII, ADEA, ADA, FMLA, NLRA §7, state anti-discrimination). Montana §39-2-904 is the only state requiring just-cause after a probationary period (default 12 months). Most written employment contracts explicitly preserve at-will status with a clear "this is at-will employment" clause that overrides any implied-contract claims from offer letters or handbooks.

Depends on the state. FTC Non-Compete Rule 16 CFR §910 (issued April 2024) would have voided most non-competes nationwide, but Ryan LLC v. FTC (N.D. Tex. Aug 20, 2024) vacated the rule — appeal pending 5th Circuit 2026. State law currently controls: CA (Bus & Prof §16600 + 2024 SB-699 voiding even out-of-state choice-of-law), ND (NDCC §9-08-06), OK (15 OS §219A), MN (§181.988, 2023 ban), DC, CO (CRS §8-2-113 banned for workers <$112K), WA (RCW §49.62 banned <$120K), IL (820 ILCS 90 banned <$75K) — all ban or sharply restrict non-competes. TX, NY, MA, NJ, FL allow "reasonable" non-competes (typically 1-2 years + narrow geographic scope + specific competitive activity). Non-solicit of customers + employees is more broadly enforceable everywhere except CA. iFillPDF auto-disables the non-compete clause when you select a banned state and substitutes a non-solicit + confidentiality combo.

The employer, under 17 USC §101 (Copyright Act work-for-hire doctrine) + 17 USC §201(b) (employer is statutory author). But there's a critical drafting trap: Stanford v. Roche 563 US 776 (2011) held that "I will assign" is a future promise that does NOT actually transfer IP — you must use present-tense "I hereby assign" wording. iFillPDF uses the present-tense formulation. CA Labor Code §2870 + IL 765 ILCS 1060/2 + WA RCW §49.44.140 + DE 19 Del. C. §805 + NC §66-57.1 + UT §34-39 + MN §181.78 employee-invention statutes carve out personal inventions made on the employee's own time, with the employee's own resources, unrelated to the business — these can't be assigned. The template auto-applies the right carve-out for the employee's work state. Trade secrets are additionally protected under DTSA 18 USC §1836 (federal civil cause of action since 2016) + UTSA in 48 states — but only if the contract includes the DTSA 18 USC §1833(b) whistleblower-immunity notice.

No — US employment contracts are valid with signatures alone, no notary or witnesses required. Electronic signatures are court-admissible under ESIGN Act 15 USC §7001 + UETA (adopted in 49 states + DC, NY uses ESRA) + FRE 902(13) self-authentication. Retain signed copies for at least 4 years (IRS Pub 583 employment-tax floor), 9 years recommended (EEOC 29 CFR §1602.14 personnel records + FLSA 29 CFR §516.5(c) payroll records). For independent contractor agreements (1099-NEC), the IRS 20-factor test + state ABC test (CA AB-5, MA, NJ, VA, IL) determines classification — misclassification penalties under 26 USC §3509 + state UI back-assessments can run 6-7 figures per audit. iFillPDF auto-flags the classification risk based on the answers you provide and offers a W-2 conversion path before you e-sign.