Should I Give My Employees a Contract?

Hello, and welcome to LegalEase. Today’s topic is: Should I Give My Employees a Contract?

We often receive this question from clients because the tendency, in today’s climate, is to give everyone who comes in the door a contract. Well, I want employers to think about this issue. When you give an employee a contract, you make it as difficult for you to get rid of that employee as it is for the employee to leave.

Most employees do not need a contract because their employment positions are regulated by federal and state law. However, there are instances when you, as an employer, may want to give an employee a contract.

Let’s talk about a few scenarios.

  • If a prospective employee has a specialized skill in your business or industry and you want to offer enticements, you may consider a contract that offers benefits above the law.  
  • If a prospective employee has a specialized skill, you may want to consider an employment contract that contains a notice period (such as 30 days) at the time of resignation, so that you have time to find a replacement for a hard-to-fill position.  
  • If a prospective employee will have access to confidential and sensitive information during employment, you may consider a contract that contains a confidentiality provision.
  • If you want to limit competition post-termination, you may consider a contract to do so. However, please check state and federal law under these circumstances because the laws differ.

Employers should consider whether it is a good idea to give contracts to every employee. There are certainly circumstances when contracts can be beneficial.

If you have questions about employment contracts, please give us a call. We will be happy to walk you through your contract and draft employment contracts for you. Thank you for joining LegalEase.