At Najla Law Firm, we believe that a valid employment contract that guards both the employee and employer is important. An employment contract, if well drafted, not only guarantees that one is in line with state and federal legislations but also minimizes the potential for dispute. The following is a step-by-step process on how to draft a solidly legal employment contract in the US.
Define the Employment Relationship
Define clearly whether the worker is full-time, part-time, or temporary. Define whether the work environment relationship is at-will in the sense that either party has the liberty of ending the relationship whenever they feel like, except where there is a clear stipulation to the contrary.
A contractual agreement by law should include general terms such as work description, job duties, salary, benefits, and work schedule. Define salary in clear terms, bonuses, overtime policy, and other forms of monetary reward.
Obey Federal and State Laws
Make sure the contract complies with federal law such as the Fair Labor Standards Act (FLSA), Title VII of the Civil Rights Act, and the Americans with Disabilities Act (ADA). In addition, make sure to incorporate state-specific law, for example, minimum wage mandate and paid leave.
Add Confidentiality and Non-Compete Clauses
Give provisions protecting your business, such as non-compete and confidentiality contracts. But make them reasonable in duration and scope to be in compliance with state law.
Clarify Dispute Resolution Mechanisms
Specify where the disputes are to be settled, i.e., arbitration, mediation, or courts. This avoids costly litigation at a later date.
Add Termination Clauses
Word the conditions under which the employment can be terminated, e.g., notice period and termination gratuity, if any.
Have Legal Review
There are complex labor laws that become obsolete every day. Najla Law Firm recommends having your contract checked by an experienced labor law attorney to be compliant and mitigate possible liabilities.
Through such actions, the employers are able to engage in a binding contract of employment that promotes a good and honest employer-employee relationship. For individualized advice, call Najla Law Firm today to safeguard your business and employees.
