Employment Agreement FAQ

An employment agreement is a contract between an employer and an employee that defines the terms of employment including role, compensation, benefits, working conditions, confidentiality obligations, IP assignment, non-compete provisions, and termination terms.

While not always legally required (most US states allow at-will employment without a written contract), a written agreement is strongly recommended. It prevents misunderstandings about compensation, role expectations, IP ownership, and exit terms. For senior hires, it is essential.

At-will employment means either party can terminate the relationship at any time, for any reason (except illegal discrimination). Most US states default to at-will. An employment agreement can modify at-will status by requiring cause for termination or specifying notice periods.