Free Employment Contract Template

Employment Contract Template

An employment contract is a formal agreement that outlines the key details of a working relationship — job duties, compensation, benefits, time off, and how either party may end the agreement. It ensures clarity and helps avoid misunderstandings down the road.

Last updated June 17th, 2025

An employment contract is a formal agreement that outlines the key details of a working relationship — job duties, compensation, benefits, time off, and how either party may end the agreement. It ensures clarity and helps avoid misunderstandings down the road.

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By Type (6)

 

What’s Typically Included?

Here are the most common sections you’ll find in an employment agreement:

  • Position & Responsibilities – What is the role, what’s expected, and to whom does the employee report?
  • Pay – Whether hourly or salaried, how often it’s paid, and if bonuses or commissions are offered.
  • Benefits – Health insurance, retirement contributions, PTO, parental leave, etc.
  • Probation Period – A trial window (typically 60–90 days) before full employment begins.
  • Termination Clause – How and when either party can end the relationship.
  • Confidentiality & IP Ownership – Ensuring company data and inventions are protected.
  • Non-Compete (if applicable) – Prevents an employee from joining a competitor immediately after leaving.

Depending on the job or industry, the agreement might include a non-disclosure clause, a non-compete, or even a trial period before full employment benefits kick in.

 

Before You Hire: Hiring Checklist (Step-by-Step)

Hiring the right person is more than just paperwork! Here’s a step-by-step to walk you through the process:

1. Post the Job

Use platforms like:

  • Indeed, LinkedIn, Glassdoor – for experienced professionals
  • Monster, CollegeGrad – for entry-level roles
  • Facebook, your website – for local or word-of-mouth hiring

2. Review Applications Thoughtfully

Look for skill match and culture fit. Red flags aren’t always obvious — take your time.

3. Interview With Intention

Ask open-ended questions, present hypothetical challenges, and look beyond the resume.

4. Background Check

Especially important for roles that involve finances, working with minors, or sensitive data. Services like GoodHire or Checkr make this easy and affordable.

5. Negotiate Terms

Clarify expectations: hours, benefits, vacation, flexibility, salary or hourly rate, start date, and reporting structure.

6. Write & Sign the Contract

Use the customizable template. Have both parties review and sign — notarize if needed.

7. Complete New Hire Paperwork

  • IRS Form W-4 (for payroll withholding)
  • Direct Deposit Form
  • Access to the company handbook or policies

 

Common Questions

What’s the difference between an employee and an independent contractor?
An employee works under company supervision and has taxes withheld. Contractors work independently and handle their taxes.

What is at-will employment?
Most U.S. workers are hired “at-will,” meaning either party can end the employment at any time, as long as it’s not for an illegal reason (like discrimination or retaliation).

Can I include a non-compete clause?
Yes — but it must be reasonable in scope, time, and geography. Many states are limiting or banning strict non-competes, so check local laws.

Are employers required to offer benefits?
Only under certain conditions (like having 50+ employees and offering health insurance per the ACA). However, offering benefits can help you attract better talent.

 

IRS Forms to Know

W4 (for Employees) – Allows the employer to withhold the correct federal tax
W-9 (for Contractors) – For collecting tax info from freelancers/contractors

 

Employment Discrimination Laws (Federal)

Under U.S. law, hiring decisions must not be based on:

  • Race or ethnicity
  • Religion or faith
  • Gender or sexual orientation
  • Pregnancy or family status
  • Disability or age (40+)
  • Genetic information
  • National origin

For complete protection details, visit the EEOC website.

 

State-Specific Templates

Employment laws vary — check state-specific templates for extra accuracy:

State Minimum Wage ($/hr) Laws
 Alabama $7.25 29 U.S.C. § 206
 Alaska $10.34 A.K. Dept. of Labor
 Arizona $12.80 A.Z. Dept. of Labor
 Arkansas $11.00 A.C.A. § 11-4-210
 California $15.00 / $14.00 Cal. Com. Code § 1182.12
 Colorado $14.81 C.O. Dept. of Labor
 Connecticut $13.00 PA 19-4 – HB 5004
 Delaware $10.50 Del. Code tit. 19, § 902
 Florida $10.00 Fla. Stat. § 448.110
 Georgia $7.25 29 U.S.C. § 206
 Hawaii $10.10 Haw. Rev. Stat. § 387-2
 Idaho $7.25 Idaho Code § 44-1502
 Illinois $12.00 820 Ill. Comp. Stat. §105/4
 Indiana $7.25 IC § 22-2-2-4(h)
 Iowa $7.25 Iowa Code § 91D.1(b)
 Kansas $7.25 Kan. Stat. § 44-1203
 Kentucky $7.25 Ky. Rev. Stat. § 337.275
 Louisiana $7.25 La. Stat. § 23:642
 Maine $12.75 Me. Stat. tit. 26, §664
 Maryland $12.50 M.D. Dept. of Labor
 Massachusetts $14.25 M.A. Dept. of Labor
 Michigan $9.87 M.I. Dept. of Labor
 Minnesota $10.33 / $8.42 M.N. Dept. of Labor
 Mississippi $7.25 29 U.S.C. § 206
 Missouri $11.15 M.O. Dept. of Labor
 Montana $9.20 M.T. Dept. of Labor
 Nebraska $9.00 Neb. Rev. Stat. § 48-1203
 Nevada $8.75 / $9.75 N.V. Dept. of Labor
 New Hampshire $7.25 N.H. Rev. Stat. § 279:21
 New Jersey $13 N.J. Rev. Stat. § 12:56-3.1
 New Mexico $11.50 N.M. Stat. § 50-4-22
 New York $13.20 N.Y. Dept. of Labor
 North Carolina $7.25 N.C. Gen Stat. § 95-25.3
 North Dakota $7.25 N.D. Cent. Code. § 34-06-22
 Ohio $9.30 O.H. Dept. Of Commerce
 Oklahoma $7.25 Okla. Stat. § 40-197.2
 Oregon $12.75 Or. Rev. Stat. § 653.025
 Pennsylvania $7.25 Act 5, § 4a.1
 Rhode Island $12.25 R.I. Gen. Laws § 28-12-3
 South Carolina $7.25 29 U.S.C. § 206
 South Dakota $9.95 S.D. Dept. of Labor
 Tennessee $7.25 29 U.S.C. § 206
 Texas $7.25 Tex. Bus. & Com. Code § 62.051
 Utah $7.25 Utah Code R610-1-3
 Vermont $12.55 Vt. Stat. tit. 21, § 384
 Virginia $11.00 Va. Code. § 40.1-28.10
 Washington $14.49 W.A. Dept. of Labor
Washington D.C. $15.20 W.V. Dept. of Employment
West Virginia $8.75 W. Va. Code § 21-5C-2
 Wisconsin $7.25 Wis. Stat. § 104.035
 Wyoming $7.25 29 U.S.C. § 206

 

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