What clauses are required in a United States Employment Agreement?

United States law requires specific provisions including: At-Will Employment Statement, FLSA Classification Notice, Equal Employment Opportunity Statement. contract.diy automatically includes all mandatory clauses with proper legal citations when generating your Employment Agreement.

What terms are prohibited in a United States Employment Agreement?

Under United States law, certain provisions are void or unenforceable, including: Waiver of minimum wage or overtime rights; Perpetual or unlimited non-compete restriction. contract.diy is built to avoid these terms and will warn you if your description suggests including something that's not legally permissible.

How does contract.diy ensure my Employment Agreement complies with United States law?

Every generated contract goes through 13 automated compliance checks specific to United States. These cover mandatory provisions, prohibited terms, proper citations, and formation requirements. Any issues are flagged before you download.

Can I use this Employment Agreement template outside of United States?

This template is specifically tailored to United States law. Using it in another jurisdiction may result in missing requirements or including provisions that don't apply. We recommend generating a new contract with the correct jurisdiction selected for full compliance.

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Employment Agreement for United States

Generate a employment agreement that complies with United States law — with 9 mandatory clauses and 13 compliance checks built in.

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Key legal considerations

Generate a US employment agreement compliant with federal employment law. Key requirements: 1. AT-WILL DOCTRINE: Unless specifying a fixed term, clearly state at-will employment. Include a disclaimer that no supervisor can alter at-will status verbally. Exceptions exist in Montana (Wrongful Discharge from Employment Act) and where implied contracts may arise. 2. FLSA CLASSIFICATION: Clearly classify the employee as EXEMPT or NON-EXEMPT. For exempt employees, identify the specific exemption (executive, administrative, professional, computer, or outside sales). Non-exempt employees must receive overtime at 1.5x for hours over 40/week. Current salary threshold for most exemptions: check DOL for current rates. 3. ANTI-DISCRIMINATION: Include EEO statement citing Title VII (race, color, religion, sex, national origin), ADA (disability), ADEA (age 40+), and state/local protections. 4. FMLA: For employers with 50+ employees, reference FMLA rights (12 weeks unpaid leave for qualifying reasons). 5. I-9 VERIFICATION: Employment must be contingent on I-9 verification. 6. COBRA: Reference continuation of health coverage rights upon termination. 7. ERISA: If benefits are offered, reference compliance with ERISA. 8. WARN ACT: For larger employers, note 60-day advance notice requirement for mass layoffs. 9. OSHA: Reference employer's obligation to provide safe working conditions. 10. STATE VARIATION NOTE: Employment law varies significantly by state. Many states have higher minimum wages, mandatory paid leave, stricter non-compete rules, and additional protected classes. Recommend selecting specific state for enhanced compliance.

What's required

Mandatory clauses for a valid employment agreement under United States law.

At-Will Employment Statement
Common law at-will doctrine
FLSA Classification Notice
29 U.S.C. § 207 (FLSA overtime provisions)
Equal Employment Opportunity Statement
42 U.S.C. § 2000e (Title VII); 42 U.S.C. § 12101 (ADA); 29 U.S.C. § 621 (ADEA)
Employment Eligibility Verification
8 U.S.C. § 1324a (INA); 8 C.F.R. § 274a.2 (I-9 requirements)
DTSA Whistleblower Immunity Notice
18 U.S.C. § 1833(b) (DTSA Whistleblower Immunity)
Severability
Common law severability doctrine
Entire Agreement / Merger Clause
Common law parol evidence rule
Electronic Signature Authorization
15 U.S.C. § 7001 (E-SIGN Act)
At-Will Employment Notice
Common law at-will doctrine

What's prohibited

Terms and provisions that are void or unenforceable under United States law.

Waiver of minimum wage or overtime rights
Employees cannot waive rights under the Fair Labor Standards Act. Any provision purporting to waive minimum wage, overtime pay, or other FLSA protections is void as a matter of law.
29 U.S.C. § 206-207 (FLSA); Brooklyn Savings Bank v. O'Neil, 324 U.S. 697 (1945)
Perpetual or unlimited non-compete restriction
Non-compete clauses without a defined time limit are generally unenforceable under US law. Courts require reasonable time limitations, typically 1-2 years. A perpetual non-compete fails the reasonableness test applied by virtually all US courts.
Common law reasonableness test; Restatement (Second) of Contracts § 188
Waiver of FMLA leave rights
Employees cannot prospectively waive their rights under the Family and Medical Leave Act. Any provision requiring an employee to waive FMLA rights as a condition of employment is void.
29 U.S.C. § 2615; 29 C.F.R. § 825.220(d)
Prospective waiver of anti-discrimination protections
Pre-dispute waivers of Title VII, ADA, ADEA, or other federal anti-discrimination rights are generally unenforceable. Employees may waive claims only after a dispute has arisen, with knowing and voluntary consent.
42 U.S.C. § 2000e-2; Alexander v. Gardner-Denver Co., 415 U.S. 36 (1974)

Legal references

Key statutes and regulations that govern employment agreements in United States.

Fair Labor Standards Act (FLSA)
29 U.S.C. § 201 et seq.
Federal minimum wage ($7.25/hr), overtime (1.5x over 40 hrs/wk), child labor, and recordkeeping requirements. Classifies workers as exempt or non-exempt.
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Title VII of the Civil Rights Act of 1964
42 U.S.C. § 2000e et seq.
Prohibits employment discrimination based on race, color, religion, sex, or national origin. Applies to employers with 15+ employees.
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Americans with Disabilities Act (ADA)
42 U.S.C. § 12101 et seq.
Prohibits discrimination against individuals with disabilities. Requires reasonable accommodations. Applies to employers with 15+ employees.
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Age Discrimination in Employment Act (ADEA)
29 U.S.C. § 621 et seq.
Prohibits employment discrimination against persons 40+ years old. Applies to employers with 20+ employees.
Family and Medical Leave Act (FMLA)
29 U.S.C. § 2601 et seq.
Provides up to 12 weeks of unpaid, job-protected leave per year for qualified medical and family reasons. Applies to employers with 50+ employees within 75 miles.
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Occupational Safety and Health Act
29 U.S.C. § 651 et seq.
Requires employers to provide safe and healthful working conditions. Establishes OSHA enforcement and standards.
WARN Act (Worker Adjustment and Retraining Notification Act)
29 U.S.C. § 2101 et seq.
Requires 60 days advance notice of plant closings and mass layoffs for employers with 100+ employees.
Employee Retirement Income Security Act (ERISA)
29 U.S.C. § 1001 et seq.
Sets minimum standards for most voluntarily established retirement and health plans in private industry. Governs fiduciary responsibilities.
Fair Labor Standards Act
29 U.S.C. § 201 et seq.
Federal minimum wage, overtime, and employment classification requirements.
Title VII of the Civil Rights Act
42 U.S.C. § 2000e et seq.
Prohibits employment discrimination based on race, color, religion, sex, or national origin.