Can this agreement be signed electronically?

Yes. Electronic signatures are valid under the ESIGN Act (15 U.S.C. ch. 96) and in UETA-adopting states when the record shows intent, consent, attribution, and retention capability. Check for industry exceptions before relying on e-signature alone.

What if the agreement requires a background check?

You must provide FCRA-compliant disclosures and obtain the candidate's written authorization before ordering a consumer report (see 15 U.S.C. §1681). Keep evidence of the disclosure and authorization in the record.

Are notarization or witnesses required?

Typically not for employment contingency agreements. Notarization and witnesses are only necessary when a state statute or the parties specifically require them; use RON only where state law and the notary's rules permit.

How should I handle I-9 and eligibility verification?

Complete Form I-9 in compliance with DHS rules. Retain I-9 documentation for 3 years after hire or 1 year after termination, whichever is later (8 CFR §274a.2); follow DHS guidance for electronic storage solutions.

How do I revoke or cancel an offer tied to contingencies?

Follow the contractual rescission language in the agreement and applicable employment laws. Document the factual basis that a contingency failed and preserve supporting records to reduce wrongful-rescission risk.

How long must I keep executed agreements and supporting documents?

Retain executed agreements for the active term plus a minimum of 3 years; retain I-9s per 8 CFR §274a.2 and HIPAA-related records for 6 years (45 CFR §164.530(j)). Consult state law for longer retention requirements.

Electronic Signature
Templates
HR
Employment Contingency Agreement

Employment Contingency Agreement

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

EMPLOYMENT CONTINGENCY AGREEMENT

Parties and Effective Date

Effective Date:

Employer Name Employer Address Candidate Name Candidate Address

Personal & Position Information

Personal Information Position Information

Proposed Start Date:

Salary / Compensation

Employment History (Most Recent Two Employers)

Employer 1 - Company Name

From: To:

Responsibilities Reason for Leaving Employer 2 - Company Name

From: To:

Responsibilities Reason for Leaving

Education

Highest Degree

Graduation Date:

Professional References (3)

Reference 1 Reference 2 Reference 3

Contingencies

The Employer's offer of employment and the Candidate's obligation to begin employment are expressly conditioned upon satisfactory completion of the following items within the timeframes specified. Failure to satisfy any listed contingency by the applicable deadline authorizes Employer, in its sole discretion, to rescind or revise the offer.

Background check (criminal history and identity verification). Completion deadline: Vendor or agency:

Drug and/or alcohol screening. Completion deadline: Location or provider:

Verification of prior employment and education. Completion deadline:

Verification of required professional license or certification. License number: Verification deadline:

Verification of eligibility to work in the country (required documentation). Completion deadline:

Credit check (where job-related and permitted by law). Completion deadline:

Other Contingencies (specify)

Representations, Authorizations and Consent

Candidate affirms that all information provided to Employer in connection with the application and hiring process is true, complete, and correct. Candidate authorizes Employer and its agents to contact references, former employers, educational institutions, licensing bodies, and any vendors identified herein to verify any information relevant to employment eligibility and fitness for the position. Candidate further authorizes the release of records and information to Employer for these limited purposes.

Consent to Background/Reference Inquiries

Employment Conditions, Withdrawal and Remedies

If any contingency is not satisfactorily completed by the deadline specified, Employer may withdraw the offer of employment or defer the effective date. Candidate will be provided written notice of any required corrective action or additional documentation; Employer's decision regarding the sufficiency of results is binding. This Agreement does not create a promise of continued employment beyond the start date and does not alter the at-will nature of employment unless otherwise set forth in a separate written agreement signed by an authorized representative of Employer.

Legal Notices and Company Policies

At-Will Employment: Employment, if offered and accepted, is at-will and may be terminated by either party at any time for any lawful reason unless a separate written employment agreement specifies otherwise and is executed by the parties.

Equal Opportunity: Employer maintains a policy of equal employment opportunity and does not unlawfully discriminate in hiring or employment on the basis of protected characteristics.

Applicant Certification

I certify that all statements and information provided in connection with my candidacy are true, accurate, and complete. I understand that any deliberate misrepresentation or omission may result in withdrawal of the offer or termination of employment.

I certify and agree to the statements above.

Miscellaneous

Governing Law: This Agreement will be governed by the laws of the jurisdiction in which the Employer's principal place of business is located, without regard to conflict of law principles. Severability: If any provision is held invalid, the remaining provisions will remain in full force. Amendment: Any amendment must be in writing signed by both parties.

Acknowledgment of Receipt

By signing below, Candidate acknowledges receipt of this Employment Contingency Agreement, accepts the conditions described herein, and authorizes the Employer to proceed with the specified verifications and checks.

Employer:

By:

Date:

Candidate:

By:

Date:

What an Employment Contingency Agreement Is and how it works

An Employment Contingency Agreement is a written condition attached to an offer of employment that makes the offer dependent on specific events or verifications, such as background checks, drug testing, reference checks, credential verification, or immigration eligibility. It defines the precise conditions, timelines, and consequences if conditions are not satisfied, and it typically permits the employer to rescind or delay the start date. Electronic execution is generally permitted under the ESIGN Act (15 U.S.C. ch. 96, 2000) and state UETA laws provided required disclosures and retention are satisfied.

Why using a clear Employment Contingency Agreement matters

A well-drafted Employment Contingency Agreement reduces litigation risk and miscommunication by clearly stating prerequisites, deadlines, and remedies. It protects both parties by documenting intent, establishing timelines, and setting the legal framework for rescission or conditional hiring while preserving electronic recordability under ESIGN and UETA.

Who typically prepares and signs these agreements

Common users include HR teams, hiring managers, and staffing firms who need consistent conditional-offer language and tracking.

HR departments at mid-market and enterprise employers handling onboarding and compliance.
Recruiting agencies and staffing firms issuing offers with contingent requirements to candidates.
In-house or external employment counsel reviewing conditions and statutory consumer disclosures.

Use consistent templates across hiring channels to reduce errors and ensure compliance with background-check and e-signature rules.

Roles that sign or authorize the agreement

HR Manager

A human resources manager typically completes template fields, authorizes background checks, coordinates testing, and confirms when contingencies are satisfied. They ensure candidate consent forms and required notices are collected and retained according to retention rules.

Hiring Attorney

An employment attorney reviews contingency language, verifies compliance with FCRA and state law, advises on risk of rescission, and may approve clauses that allocate liability and outline dispute resolution procedures.

Essential data elements recorded in the agreement

Candidate Name: Full legal name

Effective Date: MM/DD/YYYY format

Contingency List: Specific prerequisites

Deadlines: Clear time limits

Signature Block: Signer name and date

Retention Location: Where record is stored

Common legal risks and potential penalties to be aware of

Wrongful Rescission: Possible contract or discrimination claims

I-9 Violations: I-9 fines (8 CFR §274a.2)

FCRA Noncompliance: Fines or statutory damages

HIPAA Exposure: Breach risk for health data (45 CFR §164.530(j))

Tax Reporting Errors: Incorrect classification penalties

Ambiguous Terms: Enforceability disputes

Typical preparation mistakes to avoid

Using vague contingency language that fails to define what 'satisfactory' means, creating disputes about whether conditions were met or waived.
Failing to obtain required consumer disclosures or authorization for background checks under the Fair Credit Reporting Act, which can invalidate the screening process.
Missing precise deadlines or effective date formatting, which can create evidentiary gaps about when obligations begin or expire.
Relying on unsigned or improperly executed electronic records without capturing intent, consent, and audit trail elements required for e-signature validity.

Step-by-step: completing an Employment Contingency Agreement

Follow these sequential actions to draft, execute, and record a valid contingency agreement from offer to onboarding.

01

Draft Conditions: List each contingency precisely and include acceptance criteria.
02

Set Dates: Enter effective date and deadlines using MM/DD/YYYY.
03

Obtain Authorizations: Get signed consent for background and drug testing.
04

Execute and Archive: Capture signatures, timestamp, and store retention copy.

Configuring the digital signing workflow

Set up the online workflow so documents route correctly, authenticate signers appropriately, and generate reliable audit trails.

Field	Configuration
Authentication Method	Email link, SMS code, or KBA
Signing Order	Employer then candidate, sequentially
Retention Location	Secure cloud repository with access controls
Notifications	Auto-reminders and completion alerts enabled

How electronic execution typically proceeds

A standard e-sign workflow moves the agreement from sender to signer, records authentication and timestamps, and preserves an audit trail.

Upload Document: Import the template as PDF or DOCX and confirm fields.
Place Fields: Add signature, date, and initial fields in required spots.
Send to Signer: Deliver by email link or secure signing portal.
Archive Signed Copy: Store executed document with certificate of completion.

Technical and format requirements for e-signing

Choose a signing platform that supports secure PDFs, audit trails, and required authentication for your jurisdiction and industry.

File Formats: PDF, DOCX, and fillable formats
Integrations: CRM, HRIS, and document storage
Authentication: Email link, SMS code, KBA, or SSO

Ensure chosen tools produce tamper-evident signed PDFs, retain audit logs, and meet any industry compliance (for example HIPAA BAA if health data is involved).

Key dates and timing considerations to include

Document and communicate clear dates to avoid misunderstandings and to meet statutory retention or verification deadlines.

Offer Expiration Date:

Specify when a candidate's conditional offer lapses if contingencies are not met.

Background Check Window:

Allow reasonable time for reports; note any FCRA timing requirements.

Drug Test Deadline:

Set a specific deadline for sample collection and result delivery.

Start Date Conditional:

State a provisional start date subject to successful clearance.

I-9 Retention:

Retain I-9 for 3 years after hire or 1 year after termination (8 CFR §274a.2).

Primary milestones from offer to onboarding

Track these numbered milestones to confirm progress and to trigger next actions in the hiring workflow.

01

Offer Extended

Conditional offer communicated, contingencies listed, and candidate acknowledges receipt.

02

Checks Completed

Background, references, and tests completed and results evaluated.

03

Final Offer

Employer issues final, unconditional offer or rescinds based on results.

04

Onboarding Complete

First day tasks completed and records archived for retention.

Practical drafting and process recommendations

Adopt a checklist-driven approach and maintain consistent templates to reduce errors and improve defensibility.

Define Each Contingency Clearly

Specify measurable acceptance criteria for background checks, tests, or credential verifications. Avoid subjective phrasing such as 'acceptable to employer' without objective benchmarks and include timeframes for completion.

Comply with Consumer-Reporting Laws

When relying on background or credit reports, provide the required FCRA disclosures and obtain a signed authorization before ordering reports to avoid statutory liability.

Capture E-sign Consent and Audit Trail

Ensure intent, consent, attribution, and retention elements are recorded for e-signatures in line with ESIGN (15 U.S.C. ch. 96) and UETA; retain the certificate of completion.

Limit Legal Uncertainty and Retain Counsel for Complex Cases

For roles with regulatory oversight or high risk, have counsel review contingency language, rescission mechanics, and related enforcement provisions to reduce litigation exposure.

Real-world perspectives on electronic signing and workflows

Organizations across sectors report improved document handling and user experience when using verified e-signature workflows for onboarding documents.

Optica Ventures — Brian Fitzgibbons

Brian Fitzgibbons described the platform's usability for administrative tasks.

He emphasized ease of use for customers and staff.
"The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Martin Properties — Tim Martin

Tim Martin noted online processing improved compliance and speed.

He highlighted mobile and offline capabilities for field teams.
"I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Representative eSignature vendor pricing and capability overview

Comparison of starting prices and common capabilities across vendors; signNow is listed first per data guidance and envelope cap differences are noted where applicable.

	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	Varies	Varies	Varies

Frequently asked questions about Employment Contingency Agreements

Answers to common legal, operational, and technical questions encountered when preparing or executing these agreements.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are valid under the ESIGN Act (15 U.S.C. ch. 96) and in UETA-adopting states when the record shows intent, consent, attribution, and retention capability. Check for industry exceptions before relying on e-signature alone.
What if the agreement requires a background check?
You must provide FCRA-compliant disclosures and obtain the candidate's written authorization before ordering a consumer report (see 15 U.S.C. §1681). Keep evidence of the disclosure and authorization in the record.
Are notarization or witnesses required?
Typically not for employment contingency agreements. Notarization and witnesses are only necessary when a state statute or the parties specifically require them; use RON only where state law and the notary's rules permit.
How should I handle I-9 and eligibility verification?
Complete Form I-9 in compliance with DHS rules. Retain I-9 documentation for 3 years after hire or 1 year after termination, whichever is later (8 CFR §274a.2); follow DHS guidance for electronic storage solutions.
How do I revoke or cancel an offer tied to contingencies?
Follow the contractual rescission language in the agreement and applicable employment laws. Document the factual basis that a contingency failed and preserve supporting records to reduce wrongful-rescission risk.
How long must I keep executed agreements and supporting documents?
Retain executed agreements for the active term plus a minimum of 3 years; retain I-9s per 8 CFR §274a.2 and HIPAA-related records for 6 years (45 CFR §164.530(j)). Consult state law for longer retention requirements.

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