Can an Employment Agreement be e-signed?

Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, electronic signatures are generally legally valid in the United States, except where statutory exceptions apply such as wills, certain court filings, or other records statutorily required to be wet-ink.

What makes an e-signature enforceable?

An e-signature is enforceable when there is intent to sign, consent to conduct the transaction electronically (including consumer disclosures where required by 15 U.S.C. §7001(c)), attribution to the signer, and a retained record that accurately reproduces the signed agreement.

Do noncompetes apply everywhere?

Noncompete enforceability varies by state. California generally voids post-employment noncompetes, while other states such as Florida and Texas may enforce reasonable restrictions. Draft restrictive covenants to reflect the governing state's law and consider narrow geographic and temporal limits.

Is notarization required for Employment Agreements?

Most Employment Agreements do not require notarization to be valid. Notarization or remote online notarization (RON) may be used for ancillary documents or where a state-specific requirement exists; verify notary rules before relying on notarization for enforceability.

How long should I keep signed agreements?

Retain executed Employment Agreements for the employment term plus at least three years for tax and payroll support (IRC §6501(a)); retain I-9 forms per 8 CFR §274a.2 and HIPAA-related records for six years when applicable (45 CFR §164.530(j)).

What if names or details differ across documents?

Mismatched names or inconsistent terms can complicate payroll, tax reporting, and enforcement. Use full legal names, include alias or DBA lines if needed, and attach corporate formation documents or identification to reconcile differences before execution.

Electronic Signature
Templates
HR
Employment Agreement

Employment Agreement

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

EMPLOYMENT AGREEMENT

THIS IS AN EMPLOYMENT AGREEMENT, dated the day of , 20, effective the day of , 20 ("Effective Date"), by and between ("Company"), a corporation with its principal place of business in , and ("Employee"), of , .

WHEREAS, the Company wishes to assure itself of the services of Employee for the period provided in this Agreement, and Employee is willing to serve in the employ of the Company upon the terms and conditions hereinafter provided.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto hereby agree as follows:

1. Employment. The Company hereby employs Employee, and Employee hereby accepts such employment by the Company, upon the terms and conditions herein provided.

2. Position and Responsibilities. During the period of his employment hereunder, Employee agrees to serve the Company in the position of and to be responsible for and such other duties as may be delegated to him from time to time by the Company.

3. Term of Employment and Duties.

(A) Term. This agreement shall commence on the Effective Date and shall continue for a period of twelve (12) full calendar months thereafter (the primary term), unless sooner terminated, as provided herein. The primary term shall be automatically extended for additional successive one (1) year terms (the extended term) unless either party gives notice to the other party not less than days prior to the expiration of the current term and any extended term that the contract is not going to be extended.

(B) Duties. Employee shall devote his full time and attention to the performance of his duties.

(C) Vacation and Sick Leave. Employee shall be entitled to sick leave consistent with existing Company policies and vacation of not less than working days each year during the term or extension hereof.

(D) Overtime. Check the box that applies. If neither box is checked, then the statement immediately below, following the first box, applies.

It is expressly agreed that Employee's duties shall during the term hereof be administrative and executive in nature and Employee and his position shall be exempt from the overtime provisions of the Fair Labor Standards Act and all other state and federal regulations.

Other:

4. Compensation. Except as otherwise provided herein, for all services rendered by Employee in any capacity during his employment under this Agreement, commencing the Effective Date, the Company shall pay Employee a gross salary before taxes of () per annum, for the primary term and () for the first extended term and all other extended terms unless first agreed by the parties hereto in writing.

Salary payments shall be payable in . In addition, Employee may be paid bonuses in such amounts and at such times as shall be determined by the Company.

5. Stock Option: Check the box that applies. If no box is checked, there shall be no stock options.

There shall be no stock options.

Employee is hereby granted an option to purchase non-voting shares of stock in the Company in an amount equal to of the issued and outstanding stock of the Company.

Employee is also granted an option to purchase additional non-voting shares in an amount equal to for each full year of any extended terms hereof up to a maximum of of said stock.

The option price for the purchase of the first shall be the value of the stock as of as determined by the Company's accountant.

Acceptable consideration shall include the Employee's promissory note in an amount of not more than of the purchase price with the balance thereof to be paid in cash.

Said note shall bear interest at prime lending rate, plus adjusted annually with all principal due years from date and interest due annually.

6. Stock Bonus: Check the box that applies. If no box is checked, there shall be no stock bonus.

There shall be no stock bonus.

For each share of stock optioned under the above options Employee shall be entitled to receive as a bonus an equal amount of non-voting stock up to a maximum of of the Company's stock.

This bonus shall vest in the Employee at the rate of per each year of this agreement.

7. Death or Disability. In the event of the death or permanent disability of the Employee all unexercised stock options and un-issued but vested stock bonuses shall be purchased by the Company.

8. Sale of Company. In the event of a sale of the Company at anytime during the term of this agreement or any extension hereof, all stock options and stock bonuses shall be accelerated to vest in the Employee non-voting stock equal of the Company so that Employee shall receive his pro rata share of the sale as if he owned of the Company.

9. Professional Development Plan. The Employee shall seek continuing education and professional development opportunities consistent with required job skills necessary to manage and lead the Company toward established goals.

10. Termination of Employment. The Company may terminate Employee's employment under this Agreement at any time, but only after a determination by the President that cause for termination exists.

In the event of termination, the Company may elect to pay Employee as severance pay his existing salary for months after notice of termination or may provide in the notice of termination an effective date of termination not less than months from the date of the notice.

11. Covenant Not to Compete. During the term of this Agreement and for a period of year(s) after expiration hereof or any extended term hereof, or for a period of year(s) after Employee leaves his position with the Company for reasons other than termination, Employee covenants that he will not engage in competition within the State of and within a geographical radius of 100 miles from any Company branch office location.

(A) Nondisclosure. During the term of this Agreement and thereafter, Employee covenants that he shall keep secret and confidential the "confidential information" of the Company, and shall not use or disclose such information for any purpose not authorized by the Company unless the information becomes public through no activity on his part.

(B) Discharge. Breach of any of the foregoing covenants shall be cause for discharge of Employee pursuant to this Agreement.

(C) Enforceability. The Employee recognizes and agrees that in the event Employee breaches the non-compete provisions hereof that the Company will have no adequate remedy at law and will be entitled to injunctive relief as well as money damages.

12. Survivors Bound. This Agreement shall be binding upon and inure to the benefit of the parties hereto, the legal representatives, successors in interest and assigns, respectively, of each party.

13. Illness or Incapacity.

(A) If Employee becomes unable to devote his required time to the business of the Company because of illness or incapacity during the term of this Agreement, then during such period, his salary shall be 100% of his monthly Basic Salary for the first three (3) months.

(B) Successive periods of disability, illness or incapacity will be considered separate periods unless the later period is due to the same or a related cause and commences less than three (3) months from the ending of the previous period.

(C) If the Employee shall not have resumed his duties within the three (3) month period specified above, the Employee's employment may be terminated.

(D) Any dispute regarding the existence, extent or continuance of the disability, illness or incapacity shall be resolved by a majority of three medical doctors.

14. Death as Termination of Employment.

(A) Any sums due the Employee under this Agreement shall be paid to the Employee's beneficiary at the next normal pay period after the date of Employee's death.

(B) Any sums due the Employee under the Company's Profit Sharing Plan shall be paid to the Employee's beneficiary as provided by the terms of the Plan.

(C) After receiving the payments provided for in this Section, the Employee's surviving spouse and/or his estate shall have no further rights under this Agreement.

15. Insurance. The Company is authorized to purchase, own and be the beneficiary of a policy of insurance of the life of the Employee in such amounts as the Company may elect.

16. Expenses and Facilities. The Employee shall be furnished with such facilities and services as are adequate for the performance of his duties. In addition, the Company shall reimburse the Employee for all authorized expenses incurred by him in furtherance of the Company's business.

17. Benefit Plans and Auto.

(A) The Employee shall be entitled to participate in any fringe benefit plans or programs maintained by the Company for the benefit of its employees.

(B) If the Employee will have use of a company automobile, employee will keep a record of business related expenses incurred in operating the automobile and upon submission of such records Company will reimburse the Employee.

18. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of .

19. Waiver. The waiver by either party hereto of any breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by either party hereto.

20. Binding Effect and Assignment. This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns and the Employee and his heirs and legal representatives.

21. Severability. The unenforceability of any provision or provisions of this Agreement shall not affect the enforceability of any other provision of this Agreement.

22. Entire Understanding. This Agreement contains the entire understanding of the parties relating to the employment of the Employee by the Company.

23. Amendment and Default. This Agreement may be amended in whole or part at any time and from time to time but only in writing.

IN WITNESS WHEREOF, the parties hereto execute this agreement on the day and year first above written.

Company:

BY: , PRESIDENT

, EMPLOYEE

NOTARY ACKNOWLEDGMENT

STATE OF

COUNTY OF

PERSONALLY appeared before me, the undersigned authority in and for the county and state aforesaid, the within named , who acknowledged to me that he is President of , and who acknowledged that he signed and delivered the above and foregoing instrument.

GIVEN under my hand and official seal, this the day of , 20.

NOTARY PUBLIC

MY COMMISSION EXPIRES:

STATE OF

COUNTY OF

PERSONALLY appeared before me, the undersigned authority in and for the county and state aforesaid, the within named , who acknowledged to me that he is President of , and who acknowledged that he signed and delivered the above and foregoing instrument.

GIVEN under my hand and official seal, this the day of , 20.

NOTARY PUBLIC

MY COMMISSION EXPIRES:

What an Employment Agreement Is and why it matters

An Employment Agreement is a written contract between an employer and an employee that sets out the essential terms of employment, including position, duties, compensation, benefits, confidentiality, restrictive covenants, and termination provisions. It identifies the effective date, probationary periods, notice requirements, and any bonus or equity arrangements. Employment Agreements may be standalone or part of an offer package and can be executed on paper or electronically where permitted by federal and state law. Clear agreements reduce disputes by documenting expectations, responsibilities, and remedies for breach.

Why a clear Employment Agreement reduces risk

A well-drafted Employment Agreement clarifies rights and obligations, reduces litigation risk, and documents compensation, confidentiality, and termination terms. When executed properly, it creates enforceable obligations under the federal ESIGN Act and state UETA laws for electronic execution across most U.S. jurisdictions.

Who typically prepares and signs Employment Agreements

Employers, HR teams, hiring managers, general counsel, and prospective employees use Employment Agreements to record offers, role expectations, and legal protections.

Small and mid-size businesses documenting offers, at-will terms, and onboarding processes.
Large enterprises defining confidentiality, noncompete, and equity arrangements for executives and key hires.
Recruiters and staffing firms creating standardized offer templates for faster hiring cycles.

Proper use by these stakeholders ensures consistent onboarding, compliant payroll setup, and clearer remedies if disputes arise.

Core sections every Employment Agreement should include

A professional Employment Agreement clearly outlines duties, compensation, term and termination mechanics, confidentiality, restrictive covenants, and dispute resolution to set enforceable expectations and reduce later ambiguity.

Position

Define job title, reporting line, duties, full-time/part-time status, location (including remote work policy), scheduled hours, and any probation period; clarity prevents disputes over scope and expectations.

Compensation

Specify base salary or hourly rate, pay schedule, bonus structure, commission calculations, equity grants, benefits eligibility, and conditions for raises or deductions to avoid misunderstandings about total compensation.

Term & Termination

State whether employment is at-will or for a fixed term, required notice periods, definitions of cause, severance entitlements, and termination procedures to reduce legal uncertainty.

Confidentiality

Include a clear definition of confidential information, duration of obligations, permitted disclosures, return-of-materials obligations, and IP assignment when applicable to protect proprietary data.

Restrictive Covenants

Describe noncompete, nonsolicitation, and nondisclosure clauses, geographic and temporal limits, and carve-outs for prior clients or passive investment to improve enforceability under state law.

Dispute Resolution

Identify governing law, arbitration or litigation venue, class action waivers, and attorneys' fee provisions; ensure the chosen forum aligns with state statutes and enforceability concerns.

Security and compliance considerations

Encryption: TLS 1.2/1.3 in transit, AES-256 at rest

Certifications: SOC 2 Type II, ISO 27001, PCI DSS

HIPAA: Available with signed BAA for PHI

ESIGN/UETA: Meets ESIGN and UETA legal tests

Audit Trail: Timestamps, IP, signer attribution recorded

Access Controls: SSO, role-based permissions, MFA options

Step-by-step: preparing and executing an Employment Agreement

Follow these steps to prepare, execute, and archive an Employment Agreement efficiently and legally in the United States.

01

Draft: Assemble terms, job details, and compensation.
02

Review: Have HR and counsel review obligations and risks.
03

Execute: Obtain signed acceptance from employer and employee.
04

Store: Save executed copy with audit trail and retention metadata.

Configuring an eSignature workflow for Employment Agreements

Configure an eSignature workflow to route, authenticate, and collect signatures for Employment Agreements and preserve audit records.

Field	Configuration
Signer Order	Sequential or parallel routing
Authentication	Email, SMS code, or KBA where needed
Fields	Signature, initials, date, and text fields
Notifications	Email reminders and completion alerts

Typical electronic signing workflow

Typical e-execution flow for Employment Agreements moves from upload and field placement through signer authentication to final signed copy and an audit record.

Upload: Sender uploads contract PDF or DOCX.
Prepare: Place fields and assign signers.
Authenticate: Signer verifies identity per workflow.
Complete: Signed document and certificate are generated.

Platform and integration considerations for execution

Employment Agreements can be shared and signed across common platforms and devices; confirm integrations and file formats before sending.

Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace
Formats: PDF, DOCX, HTML supported
Auth Options: Email, SMS, SSO, KBA available

Key dates and deadlines to track

Track dates for offer acceptance, start date, benefits eligibility, payroll setup, and any probation or notice periods to ensure compliance and accurate payroll processing.

Offer Acceptance:

Return signed offer by the date specified in the offer letter.

Effective Date:

Use MM/DD/YYYY; determines when rights and responsibilities begin.

Payroll Setup Deadline:

Provide completed I-9 and tax forms before the first payroll run.

Probation Period End:

Track probation completion to confirm benefits and eligibility.

Termination Notice:

Follow notice period specified in the agreement or state law.

Common mistakes to avoid when preparing Employment Agreements

Using vague compensation language such as 'reasonable' or 'market rate' that leaves pay and bonus terms open to dispute and tax reporting issues.
Failing to specify governing state and forum, creating uncertainty about enforceability of restrictive covenants and dispute resolution procedures.
Omitting IP assignment or confidentiality details when hiring creators, which risks ownership disputes over work product and trade secrets.
Relying on handwritten additions or unsigned amendments; failing to maintain a single executed version with audit metadata undermines evidentiary value.

Legal risks and potential penalties

I-9 Violations: Fines $281–$2,789 per violation

Misclassification: Wage backpay, penalties, interest

Wage Payment Errors: State penalties and liquidated damages

HIPAA Noncompliance: Civil penalties and contractual exposure

Breach of NDA: Injunctions, damages, attorneys' fees

Invalid Covenants: Courts may refuse enforcement

eSignature vendor comparison for executing Employment Agreements

Vendor pricing and feature availability vary; the table highlights starting prices, trial availability, bulk send capability, audit trails, HIPAA support, and envelope caps with signNow listed first.

	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, no credit card	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	Vendor limits apply	Vendor limits apply	Vendor limits apply

How organizations use e-signed Employment Agreements

Two real examples show how electronic execution streamlines hiring, preserves audit trails, and supports compliance when onboarding employees and contractors.

Optica Ventures

Optica Ventures streamlined offer acceptance by enabling candidates to review and sign Employment Agreements electronically across desktop and mobile devices.

Signed faster with fewer manual steps and reduced back-and-forth.
This reduced processing time, improved recordkeeping, and preserved an audit trail for each executed agreement, simplifying HR onboarding and minimizing follow-up for missing paperwork.

Fertility Centers of Illinois

Fertility Centers of Illinois adopted e-signatures to execute employment and contractor agreements while enforcing security and compliance requirements.

Ensured compliance and flexible signing options for staff and contractors.
The organization reported that responsive support and API integration helped automate workflows and maintain secure records for HR audits and external compliance reviews.

Frequently asked questions about Employment Agreements and e-signatures

Practical answers to common questions about drafting, executing, and storing Employment Agreements, including e-signature legality and retention obligations.

Need help? Contact support

Can an Employment Agreement be e-signed?
Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, electronic signatures are generally legally valid in the United States, except where statutory exceptions apply such as wills, certain court filings, or other records statutorily required to be wet-ink.
What makes an e-signature enforceable?
An e-signature is enforceable when there is intent to sign, consent to conduct the transaction electronically (including consumer disclosures where required by 15 U.S.C. §7001(c)), attribution to the signer, and a retained record that accurately reproduces the signed agreement.
Do noncompetes apply everywhere?
Noncompete enforceability varies by state. California generally voids post-employment noncompetes, while other states such as Florida and Texas may enforce reasonable restrictions. Draft restrictive covenants to reflect the governing state's law and consider narrow geographic and temporal limits.
Is notarization required for Employment Agreements?
Most Employment Agreements do not require notarization to be valid. Notarization or remote online notarization (RON) may be used for ancillary documents or where a state-specific requirement exists; verify notary rules before relying on notarization for enforceability.
How long should I keep signed agreements?
Retain executed Employment Agreements for the employment term plus at least three years for tax and payroll support (IRC §6501(a)); retain I-9 forms per 8 CFR §274a.2 and HIPAA-related records for six years when applicable (45 CFR §164.530(j)).
What if names or details differ across documents?
Mismatched names or inconsistent terms can complicate payroll, tax reporting, and enforcement. Use full legal names, include alias or DBA lines if needed, and attach corporate formation documents or identification to reconcile differences before execution.

Explore Templates

Offer Letter Bahrain Seneca College Offer Letter Canada College Offer Letter

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now