Parties
Identifies employer and employee by full legal name and legal entity; include entity type and state of formation where applicable.
A clear covenant reduces ambiguity about duties, documents consent to specific policies, and creates an auditable record of employee commitments. When properly executed it supports enforcement of confidentiality, clarifies post-employment obligations, and helps satisfy recordkeeping and audit requirements under federal and industry rules.
Use the covenant with role-specific review and retained copies for HR and legal files to ensure consistent application and defensibility.
Identifies employer and employee by full legal name and legal entity; include entity type and state of formation where applicable.
States the effective date, duration, and any conditions for renewal or automatic expiration of the covenant's obligations.
Lists concrete duties, confidentiality restrictions, and permitted/prohibited activities with examples to limit ambiguity.
Describes what the employee receives (employment, severance, bonus) in exchange for the covenant to establish contract validity.
Specifies the state law that governs interpretation and dispute resolution, and whether arbitration is required.
Provides lines for dated signatures, printed names, titles, and any witness or notary language required for the chosen jurisdiction.
| Field | Configuration |
|---|---|
| Signature | Required; date-stamped and auditable |
| Initials | Optional; place next to material clauses |
| Conditional Clauses | Show only if role or compensation threshold applies |
| Routing | Sign employee first, then HR, then legal reviewer |
Confirm the platform's security and compliance posture aligns with your industry needs and retention policies before roll-out.
W-9 delivered to payers when requested; no fixed federal deadline
W-2 to employee by Jan 31 each year
1099-NEC to recipient and IRS by Jan 31
Form 1040 due April 15 (extension to Oct 15 possible)
Retain per 8 CFR §274a.2 retention rules
Finalize language and internal approvals before sending
All parties sign and date to make the covenant effective
Provide copies to employee and retain employer copy in HR file
Move to archival storage according to retention policy
| 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 by vendor | Varies by vendor | Varies by vendor | Varies by vendor |
| Bulk Send | Yes | 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 | No cap | No cap | No cap |
We implemented digital signing for recurring employee acknowledgements and onboarding forms to reduce processing time.
Moving employee acknowledgements and property-related covenants online streamlined our workflows for distributed staff.