Can an Employment 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 evidence of signer intent, consent to transact electronically, attribution, and reliable record retention to satisfy legal requirements.

Are non-compete clauses enforceable everywhere?

No. Enforceability varies by state. For example, California generally prohibits non-competes, while states like Florida and Texas may enforce reasonable covenants; consult state law before relying on restrictive covenants.

What happens if the wrong person signs?

If a non-authorized person signs, the agreement may be voidable. Verify authority for employer signatories and retain proof of delegation or corporate resolution naming signers to support enforceability.

How should I store executed agreements?

Store signed PDFs with audit trails and secure encryption. Retain records in accordance with federal rules such as IRC §6501 for tax records and 8 CFR §274a.2 for I-9 forms.

Do employment agreements require notarization or witnesses?

Not generally required for standard employment contracts. Some states or specific provisions (e.g., pension assignments or certain statutory acknowledgements) may require additional formalities; check state law for exceptions.

How do I revoke or amend an executed Employment Agreement?

Amendments require mutual written consent by authorized signatories. To revoke, follow termination clauses in the agreement; unilateral revocation is risky and may lead to breach claims without agreed procedures.

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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!

What an Employment Agreement Covers

An Employment Agreement is a written contract that defines the legal relationship between an employer and an employee, specifying roles, duties, compensation, benefits, confidentiality, and termination terms. It records mutual expectations, sets the effective date and duration, and often includes dispute resolution, intellectual property assignment, and restrictive covenant provisions. In the United States these agreements are governed by state contract law and may be subject to federal requirements for wages, benefits, and nondiscrimination. Well-drafted agreements reduce ambiguity and provide enforceable remedies if either party breaches agreed obligations.

Why a Clear Employment Agreement Matters

A clear agreement protects both parties by documenting compensation, duties, termination triggers, and post-employment obligations; it reduces litigation risk and helps ensure compliance with wage and recordkeeping laws.

Who Typically Prepares and Signs Employment Agreements

Multiple stakeholders use employment agreements to establish working relationships and legal obligations.

HR and People Operations teams who standardize offer packages and maintain personnel records.
Hiring managers and executives who negotiate role-specific terms and approve compensation.
New hires and current employees who review, accept, and retain signed agreements.

Each party should keep a signed copy and ensure authorized representatives sign on the employer’s behalf.

Typical Signatories and Their Roles

HR Manager

Responsible for drafting standardized templates, ensuring provisions comply with wage and hour laws, and storing the executed agreement in the employee file for required retention periods.

Employee / Executive

Reviews role, compensation, and restrictive covenants; negotiates material changes; signs to accept terms; may request counsel review before executing.

Core Elements to Include in an Employment Agreement

A professional Employment Agreement should be concise but comprehensive, covering performance expectations, pay, and protections for both parties.

Parties

Identify the legal employer entity and the employee using full legal names and business designations to avoid ambiguity and ensure enforceability.

Term and Start Date

Specify the effective date and, if applicable, fixed term or at-will status; include hours and expected location of work.

Compensation

Detail salary, bonuses, commission formulas, pay frequency, and any deferred compensation or equity awards with vesting schedules.

Duties and Reporting

Describe primary responsibilities, reporting lines, performance metrics, and conditions for material role changes.

Confidentiality & IP

Include assignment of inventions, confidentiality obligations, and any license back or carve-outs for preexisting IP.

Termination & Severance

Specify notice requirements, cause definitions, severance entitlements, and post-termination obligations such as return of property.

Required Information Items

Full Legal Name: Employee’s legal name

Employer Entity: Registered business name

Effective Date: Agreement start date

Compensation: Salary or pay basis

Job Title: Position designation

Signatures: Authorized signers

Step-by-Step: Completing an Employment Agreement

Follow these steps in order to prepare, review, and finalize an enforceable Employment Agreement.

01

Draft: Populate standard template fields with role-specific details.
02

Review: Legal and HR review for compliance and consistency.
03

Sign: Execute by authorized employer signer and the employee.
04

Store: Save executed copy in secure personnel records.

Configuring an Online Completion Workflow

Standardize a digital workflow to reduce errors and ensure consistent routing for offers and agreements.

Field	Configuration
Assign Signers	Employer signer then employee
Authentication	Email link or SMS code
Order	Sequential signing recommended
Retention	Store PDF with audit trail

Digital Signing and Submission Requirements

Choose an e-signature setup that supports secure signing, an audit trail, and storage compatible with compliance needs.

Authentication: Email, SMS, or stronger KBA
Audit Trail: Timestamped event log
Document Formats: PDF and DOCX supported

Ensure the provider supports ESIGN/UETA compliance and can produce a complete certificate of completion for recordkeeping.

Where to Send and How Routing Works

Routing ensures the right parties receive the agreement in sequence and that signed copies are stored appropriately.

Upload Document: Start by uploading the finalized agreement.
Place Fields: Add signature, date, and initial fields where required.
Add Recipients: Enter employer and employee contact details.
Send for Signature: System emails signing links and captures events.

Key Dates and Timing Expectations

Track critical dates so employment terms, benefits, and tax reporting align with legal and administrative deadlines.

Offer Expiration:

Specify acceptance deadline to avoid ambiguity.

Start Date:

Defines benefits eligibility and payroll setup.

Probation Period End:

Marks performance review and status change.

Tax Form Setup:

Collect W-4 and I-9 at hire

Record Retention:

Store for required statutory periods

Common Risks and Consequences of Errors

Invalid Signature: May render agreement unenforceable

Incorrect Pay Terms: Leads to wage claims

Missing I-9: Subject to fines under 8 CFR §274a.2

Overbroad Covenants: May be void in some states

Data Exposure: HIPAA or privacy breaches for health data

Retention Failures: Noncompliance with IRS or labor rules

Typical eSignature Providers for Employment Agreements

Compare basic pricing and core features for common eSignature options used to execute Employment Agreements; signNow appears first per vendor ordering guidance.

	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	Yes, 7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes (Business Premium)	Varies	Varies	Varies	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions About Employment Agreements

Answers to common questions about e-signing, enforceability, recordkeeping, and signatory authority for Employment Agreements.

Need help? Contact support

Can an Employment 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 evidence of signer intent, consent to transact electronically, attribution, and reliable record retention to satisfy legal requirements.
Are non-compete clauses enforceable everywhere?
No. Enforceability varies by state. For example, California generally prohibits non-competes, while states like Florida and Texas may enforce reasonable covenants; consult state law before relying on restrictive covenants.
What happens if the wrong person signs?
If a non-authorized person signs, the agreement may be voidable. Verify authority for employer signatories and retain proof of delegation or corporate resolution naming signers to support enforceability.
How should I store executed agreements?
Store signed PDFs with audit trails and secure encryption. Retain records in accordance with federal rules such as IRC §6501 for tax records and 8 CFR §274a.2 for I-9 forms.
Do employment agreements require notarization or witnesses?
Not generally required for standard employment contracts. Some states or specific provisions (e.g., pension assignments or certain statutory acknowledgements) may require additional formalities; check state law for exceptions.
How do I revoke or amend an executed Employment Agreement?
Amendments require mutual written consent by authorized signatories. To revoke, follow termination clauses in the agreement; unilateral revocation is risky and may lead to breach claims without agreed procedures.

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