Can an agreement be signed electronically?

Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Ensure intent, consent, attribution, and retrievable records to meet the four-part ESIGN test.

When is notarization or witnesses required?

Notarization or witnesses depend on the transaction and state rules. For deeds, transfers, or some durable powers of attorney states often require notarization and may require witnesses per state law.

What if party names do not match tax records?

Mismatched names can trigger backup withholding or IRS reporting errors. Use formal legal names consistent with W-9 and employer tax filings to avoid IRS penalties.

How do I revoke or amend the agreement?

Amendments should be in writing and signed by all parties. Revocation depends on terms; follow contractual termination provisions and document mutual releases to avoid disputes.

How should signed copies be stored?

Store signed copies with tamper-evident PDFs and an audit trail; retain per applicable retention rules (IRS, HIPAA) and ensure offsite backup and controlled access.

What are immediate steps if a signature is challenged?

Preserve the original record and audit trail, gather authentication evidence (IP, email headers, authentication logs), and consult counsel; ESIGN admissibility rests on demonstrable intent and attribution.

Electronic Signature
Templates
HR
Employee Member Agreement

Employee Member Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EMPLOYEE MEMBER AGREEMENT

This Employee Member Agreement (the Agreement) is entered into by and between Employer Name: and Employee Name: effective as of .

RECITALS

WHEREAS, Employer operates and administers a members program and employs persons who also hold membership privileges; and WHEREAS, Employee seeks employment with Employer and, as a condition of employment or membership, agrees to the terms, duties, obligations and policies set forth in this Agreement.

PERSONAL INFORMATION

Full Legal Name Address Primary Phone Email

POSITION AND TERMS OF EMPLOYMENT

Position / Title Department Reporting Manager

Start Date: Employment Status: Full-time Part-time Exempt Non-exempt

Salary / Compensation Pay Frequency / Additional Compensation Terms

MEMBERSHIP OBLIGATIONS

Employee acknowledges that membership privileges are subject to Employer rules, policies and confidentiality obligations. Employee agrees to abide by membership eligibility criteria, attendance, fee obligations (if any), and disciplinary procedures. Any privileges conferred by membership are incidental to employment and may be modified or revoked in accordance with Employer policy.

Member Duties and Responsibilities Member Privileges / Restrictions

CONFIDENTIALITY, NON-DISCLOSURE & INTELLECTUAL PROPERTY

Employee shall not disclose, use or appropriate any confidential or proprietary information of Employer during or after employment except as required in the performance of duties for Employer. All inventions, discoveries, developments and works of authorship created, conceived or reduced to practice by Employee during employment and related to Employer's business or using Employer resources shall be the exclusive property of Employer. Employee hereby assigns all right, title and interest in such intellectual property to Employer and agrees to execute instruments reasonably requested to effectuate assignment.

BENEFITS, LEAVE AND ELIGIBILITY

Eligibility for benefits is governed by Employer plan documents and policies. Nothing in this Agreement guarantees eligibility beyond the plan terms. Employer reserves the right to amend, modify, or terminate benefit plans in its discretion.

Benefits Eligible Health Retirement Other

TERMINATION

Employment is at-will and may be terminated at any time by either party with or without cause and with or without notice, except where a binding written agreement signed by both parties provides otherwise. Termination of employment may also result in termination or modification of membership privileges in accordance with Employer policy.

EMPLOYMENT HISTORY

Most Recent Employer

Dates Employed:

Primary Responsibilities Reason for Leaving

Prior Employer

Dates Employed:

Primary Responsibilities Reason for Leaving

EDUCATION

Highest Degree or Certification Institution

Graduation Date:

Other Trainings / Certifications

REFERENCES

Please provide three professional references.

Reference 1 - Name

Reference 2 - Name

Reference 3 - Name

LEGAL DISCLOSURES

At-Will Employment: Employee understands and agrees that, except as otherwise provided in a separate written agreement signed by both Employee and a duly authorized representative of Employer, employment with Employer is at-will and may be terminated at any time by either party, with or without cause or notice.

Equal Opportunity: Employer is an equal opportunity employer. Employer does not discriminate on the basis of race, color, religion, sex, national origin, age, disability, genetic information, veteran status, sexual orientation, gender identity or any other characteristic protected by applicable law.

APPLICANT CERTIFICATION & BACKGROUND AUTHORIZATION

I certify that all information provided in this Agreement, including all attachments and exhibits, is true, correct and complete to the best of my knowledge. I understand that any misrepresentation or omission may result in refusal to hire, discipline or termination of employment.

Authorization: I authorize Employer and its agents to investigate my background, employment history, education, criminal history, motor vehicle records and other matters related to my qualifications for employment. I authorize all persons and organizations to provide information requested by Employer. I release Employer and all providers of information from any liability for furnishing such information.

Background Check Consent: I consent to a background check as described above.

Drug Screening Consent: I consent to pre-employment and reasonable suspicion drug testing in accordance with Employer policy.

Disclosure of Criminal Convictions (if any)

NOTICES

Any notice required or permitted under this Agreement shall be in writing and delivered to the addresses of the parties set forth below or to such other address as either party may designate in writing.

Employer Notice Address Employee Notice Address

MISCELLANEOUS

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the state or jurisdiction where the Employer maintains its principal office, without regard to conflict of law principles.

Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Entire Agreement: This Agreement constitutes the entire agreement between the parties relating to the subject matter herein and supersedes all prior agreements and understandings, whether written or oral.

ACKNOWLEDGMENT

By signing below, Employee certifies that Employee has read, understands and agrees to the terms of this Agreement and acknowledges receipt of any required policies and disclosures referenced herein.

Employer Name:

By:

Date:

Employee Name:

By:

Date:

What an Employee Member Agreement Is and When It Applies

An Employee Member Agreement is a written contract that defines the relationship, rights, duties, and membership terms between an organization and an individual who serves as both an employee and a member of the entity or a member-like participant (for example, worker-members of a cooperative or employee-owners in an association). The document commonly covers compensation, voting or governance rights, confidentiality, intellectual property assignment, duration, termination, and dispute resolution. It serves as the primary record for obligations and expectations and is used for onboarding, internal governance, and regulatory compliance across HR, tax, and corporate records.

Why a Clear Employee Member Agreement Matters

A clear agreement reduces ambiguity about compensation, membership rights, and IP ownership, supports consistent HR actions, and creates a defensible record for audits, benefits administration, and regulatory review.

Who Typically Prepares or Signs This Agreement

Typical stakeholders who draft, review, or sign Employee Member Agreements include HR leaders, corporate counsel, hiring managers, and the employee-member.

HR and People Operations teams handling onboarding, benefits setup, and personnel file management.
In-house or outside counsel reviewing governance, IP, and compliance provisions before execution.
Employee-members or representatives (e.g., union or coop board members) who accept membership rights and duties.

Ensure each stakeholder understands which clauses (tax treatment, voting rights, confidentiality) are negotiable and which are required by policy or law.

Core Sections to Include in a Professional Agreement

A well-drafted Employee Member Agreement groups obligations into clear sections so rights are enforceable and administrative tasks are straightforward.

Parties

Identify legal names and entity types of the employer and the employee-member, including any parent company or membership class definitions to avoid ambiguity.

Term

Specify effective date, term length, renewal mechanism, and conditions that trigger termination or conversion of membership status.

Compensation

Detail salary, bonuses, equity or membership distributions, payment schedule, tax withholding responsibilities, and any membership-based profit sharing.

Governance Rights

Describe voting rights, eligibility for board membership, quorum rules, notice periods for meetings, and procedures for resolving member disputes.

IP and Confidentiality

Assign ownership of inventions, include confidentiality obligations, and specify permitted uses of company data and trade secrets by the employee-member.

Compliance

Include governing law, arbitration or forum clauses, references to applicable statutes, and required disclosures for consumer-facing provisions.

Step-by-Step: How to Complete and Execute the Agreement

Follow these four steps to prepare, sign, and record a compliant Employee Member Agreement.

01

Draft: Prepare a complete draft with all required sections and accurate party names.
02

Review: Have HR and legal review for tax, IP, and governance implications.
03

Sign: Execute using allowed signature methods and any required notarization or witness steps.
04

Store: Save final signed copies in secure records with retention tagging.

How to Configure an Online Signing Workflow

Set up a consistent digital workflow so every agreement follows the same review and approval path.

Field	Configuration
Signer Order	Sequential or parallel routing based on internal approval steps.
Authentication	Email + optional SMS or ID verification for higher assurance.
Required Fields	Mark name, date, and signature fields as mandatory before send.
Retention Setting	Enable automatic archiving and audit trail capture for compliance.

Where to Send or File the Completed Agreement

Routing depends on whether the agreement affects payroll, benefits, or membership governance.

HR Records: Store the executed original in the employee’s personnel file.
Payroll: Send compensation terms to payroll for tax withholding setup.
Corporate Records: File membership or governance changes in corporate minute books if applicable.
Legal Repository: Keep a copy with counsel for dispute or audit defense.

Digital Signing and Platform Considerations

Choose a platform that supports required authentication, audit trails, and retention for signed Employee Member Agreements.

File Formats: PDF, DOCX supported
Integrations: Connect to HRIS, payroll, or document storage
Compliance: Enable audit trails and encryption

Ensure the platform can export signed PDFs with timestamps and an audit trail and can integrate with your HR and recordkeeping systems.

Key Timelines and When Actions Must Occur

Certain dates and deadlines affect tax reporting and benefits eligibility when an Employee Member Agreement is executed.

Effective Date and Payroll:

Effective date sets payroll and withholding start; update payroll before first pay cycle.

Tax Reporting:

Provide completed forms and TINs promptly to avoid backup withholding.

Benefits Enrollment:

Enrollments often require action within 30–60 days of effective date.

Record Retention Start:

Retention periods run from the agreement creation or termination date as required.

Amendments:

Document and sign any amendments before they take effect.

Common Mistakes to Avoid When Preparing the Agreement

Using informal or differing party names that do not match tax or corporate records, which can cause reporting and enforcement problems.
Failing to specify the effective date or leaving ambiguous renewal terms, which creates disputes about when rights and obligations begin.
Neglecting to assign IP or clarify ownership of member-created work, risking future claims over inventions or code.
Skipping authentication or audit-trail requirements for electronic signatures, leaving signatures susceptible to challenge in disputes.

Risks and Potential Consequences of Errors

Tax Withholding Errors: Backup withholding

I-9 Noncompliance: Penalties up to $2,789

Unclear IP Ownership: Litigation risk

Invalid Signature: Contract unenforceable

Governance Violations: Member disputes

Recordkeeping Failures: Audit exposure

Pricing and Feature Snapshot for eSignature Providers

Compare typical starting prices and key features across commonly used eSignature providers; signNow is listed first per table conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions About Employee Member Agreements

Answers to common execution, validity, and recordkeeping questions for Employee Member Agreements.

Need help? Contact support

Can an agreement be signed electronically?
Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Ensure intent, consent, attribution, and retrievable records to meet the four-part ESIGN test.
When is notarization or witnesses required?
Notarization or witnesses depend on the transaction and state rules. For deeds, transfers, or some durable powers of attorney states often require notarization and may require witnesses per state law.
What if party names do not match tax records?
Mismatched names can trigger backup withholding or IRS reporting errors. Use formal legal names consistent with W-9 and employer tax filings to avoid IRS penalties.
How do I revoke or amend the agreement?
Amendments should be in writing and signed by all parties. Revocation depends on terms; follow contractual termination provisions and document mutual releases to avoid disputes.
How should signed copies be stored?
Store signed copies with tamper-evident PDFs and an audit trail; retain per applicable retention rules (IRS, HIPAA) and ensure offsite backup and controlled access.
What are immediate steps if a signature is challenged?
Preserve the original record and audit trail, gather authentication evidence (IP, email headers, authentication logs), and consult counsel; ESIGN admissibility rests on demonstrable intent and attribution.

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