Agreements  ›  Employment Agreement

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Free. No signup. W-2 hire — compensation, benefits, IP assignment, confidentiality, and at-will or term termination. State-aware.

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An employment agreement defines the terms of a W-2 employment relationship — compensation, title, benefits, work location, IP assignment, confidentiality, and termination terms. It sets expectations on both sides and provides legal protection when either the employer or employee needs to enforce their rights.

Who uses it

Employers hiring full-time or part-time W-2 employees. Startups making their first hires. Any company that wants a written record of the employment terms beyond the offer letter.

When to use it

Before the first day of work. An employment agreement signed at onboarding covers IP assignment and confidentiality from day one — critical for any employee who will touch proprietary information or create valuable work product.

When not to use it

Not for independent contractors — use an IC agreement. Not appropriate as the primary protection for senior executives or C-suite employees — those require specialized employment counsel due to equity, severance, and change-of-control provisions.

Eight questions. Then a draft.

1

Parties

Employer company, employee name, title, and start date.

2

Compensation

Salary or hourly wage, pay frequency, bonus eligibility, equity overview.

3

Benefits

Health insurance, 401(k), PTO policy, other benefits reference.

4

Duties and reporting

Job title, responsibilities, reporting structure, work location.

5

IP assignment

All work product created during employment belongs to employer. Prior inventions excluded.

6

Confidentiality

Scope, duration, permitted disclosures, return of confidential information.

7

At-will vs. term

At-will employment or fixed-term with for-cause termination provisions.

8

Governing state

Employee's work state — employment law is state-specific and this matters.

A complete employment agreement. Every clause you need.

Plain-English, state-aware, ready for onboarding. The sections that protect the employer's IP and confidentiality while giving the employee clear terms.

Compensation and benefits

Salary or hourly rate, pay schedule, bonus eligibility criteria, and reference to the employee benefits program. Clear statement that equity is governed by a separate grant agreement.

IP assignment clause

All inventions, works, and developments created during employment — even on personal time using employer resources — are assigned to the employer. Prior inventions exclusion list.

Confidentiality

Broad confidentiality covering trade secrets, client data, business plans, and personnel information. Survival clause keeping confidentiality obligations post-employment.

At-will employment statement

Clear at-will language — employment can be terminated by either party at any time for any lawful reason. State-specific modifications for California and other protected-employee states.

Conflict of interest

Employee must disclose outside employment, business interests, or financial interests that conflict with the employer's interests.

Return of property

On termination, all company property — equipment, data, documents, credentials — must be returned or deleted immediately.

Where employment agreements create problems.

Common drafting errors that create liability or leave IP unprotected.

Mistake

No IP assignment

Without a signed IP assignment, the law in many states gives employees ownership of inventions created without company resources — even on company time. Protect IP from day one.

Mistake

Mixing at-will with for-cause language

Contracts that say "at-will" but also list termination grounds can be read to limit at-will rights. Be intentional — at-will or for-cause, not both.

Mistake

Non-competes in prohibited states

California, North Dakota, Minnesota, and other states ban or severely limit employee non-competes. Including them creates false expectations and potential liability.

Mistake

No prior inventions exclusion

An IP assignment without a prior inventions schedule lets employers claim ownership of work the employee created before being hired. Always include a prior inventions exclusion list.

How it looks in practice.

Example input

"Startup hiring a full-stack engineer. $130,000 salary, bi-weekly pay. Equity in a separate grant. At-will employment. Full IP assignment. Strong confidentiality. No non-compete. Non-solicitation of employees and customers for 12 months post-employment. New York law."

Output preview

A 14-section employment agreement, New York-governed. $130,000 salary, bi-weekly, at-will. Full IP assignment with prior inventions schedule. Broad confidentiality surviving termination. No non-compete clause. 12-month non-solicitation of employees and customers. Return of property on termination.

Download options

Word (.docx) for editing in any tool. PDF for sending out as-is. Both formats, no watermark, no account needed.

Where AI ends, counsel begins.

BizDraft is a drafting tool. It is not a substitute for a lawyer who knows your specific situation. Reach for one when:

Executive and C-suite hires

Senior executive employment agreements involve equity, change-of-control provisions, severance packages, and board rights that require specialized employment counsel on both sides.

State-specific compliance

California, New York, and other states have robust employee-protection laws that limit what employers can require. Have a local employment attorney review the agreement for the employee's work state.

Dispute or termination situation

If you are amending an existing agreement, terminating for cause, or dealing with an employment dispute, stop drafting and consult an employment attorney before taking any action.

Employment agreement questions.

Is an employment agreement required by law?

No — employment can exist without a written agreement. But without one, you have no IP assignment, no confidentiality obligations, and no documented at-will terms. The offer letter alone is not enough to protect the employer's IP or the employee's compensation terms.

Can I require a non-compete in the employment agreement?

Depends on the state. California, North Dakota, Minnesota, and several others ban employee non-competes almost entirely. The FTC attempted a federal ban. For states where they are permitted, enforceability depends on the geographic scope, duration, and the employee's role. BizDraft will flag your state's rules.

What does "at-will employment" mean?

At-will means either party can end the employment relationship at any time, for any lawful reason, or for no reason at all. The employer can fire without cause; the employee can quit without notice. Most US states default to at-will unless the agreement says otherwise.

Who owns code written by an employee at home on their personal computer?

Potentially the employer — if the code relates to the company's business or was developed using company information. Many states have employee invention statutes that limit employer claims on truly personal projects. The agreement should clarify what is and is not company property. A prior inventions schedule protects the employee's pre-existing personal projects.

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⚠ Legal disclaimer: Agreements generated by BizDraft are AI-produced for informational purposes only. They do not constitute legal advice and do not create an attorney-client relationship. For any agreement of significant legal or financial importance, consult a qualified attorney before signing.