Your startup had a successful launch and funding round, and now you are ready to bring on some employees. You may be excited for the opportunity to interview potential candidates, or you might dread it. Either way, you need to make sure you have employment agreements in place for each new hire so that your expectations and theirs are communicated clearly in a mutually agreed upon document. While verbal contracts are legally binding and generally enforceable under California law, it is still a good idea to have all agreements in writing so that, should your employee violate his or her employment agreement, you will be able to prove the violation in court. If you need any help drafting your employment agreement or formulating your employment policies, contact the business law attorneys at Verhagen Bennett today for a free consultation.
Five Things You Must Include in Your California Employment Agreement
1. The name of the parties and the relationship between the parties
This may sound obvious, but many employers get so caught up in thinking about the details that they forget to include the most obvious parts of an employment contract. Make sure you include your name, your new employee’s name, and the relationship of your new employee to you and/or your business.
2. The details of what your employee will be providing to you
You will want to include a section that details your employee’s job duties, responsibilities, hours of work, and anything else you expect from your employee. By clearly laying out your employee’s job duties in the agreement, you are communicating to your employee exactly what your expectations are and giving him or her an opportunity to make an informed decision regarding whether or not they can meet your requirements.
3. The details of what you will be providing to your employee
Similarly, you will want to include a section that details what you will be providing to your employee, including salary, commissions, bonuses, and benefits like health insurance. By clearly communicating what you are offering, you are helping your employee make an informed decision regarding working at your company, so there are no surprises down the road.
4. The at-will nature of the employment
California is an at-will employment state. That means you can legally terminate an employee “at will,” or without providing any reason for the termination.
5. Terms of termination
There may come a day when you and your new employee decide to go your separate ways. You will want to make sure you have a provision in place that clearly states how much notice is required for either party to announce their departure, what your employee is permitted to do and not permitted to do after departing, and any payment due upon termination.
Contact a Santa Monica or Los Angeles Business Law Attorney Today
If you are considering hiring an employee for your startup, it is wise to consult with a business law attorney to make sure you include all the important provisions in your employment agreement. The Santa Monica and Los Angeles business law attorneys at Verhagen Bennett have experience helping startups and other businesses draft effective employment agreements that help them clearly communicate their expectations and wishes to their future employees. We can help you do the same; just contact us online or at (310) 917-1064 for your free consultation.
(image courtesy of Kelly Sikkema)
For questions or comments about this post, please email us directly at: info@VerhagenBennett.com
© 2018 Verhagen Bennett LLP — This article is for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.