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Labor & Employment

Employment Agreement

An employment agreement is easiest to shape before it is signed, when both sides still want the arrangement to work. Most of what later becomes a dispute was written into the draft at the start.

Reviewed

01 GUIDE

Employment Agreement: what usually happens

Where the money terms hide

Base salary is rarely the complicated part. Bonus and commission language deserves careful reading, especially terms that make payment discretionary or require you to be employed on the payout date. Equity grants usually live in separate plan documents, and vesting, acceleration on a sale, and what happens to unvested awards on departure are all set there. Sign-on and relocation payments often come with repayment obligations if you leave early. Ask for every document the agreement refers to, because the summary in the offer letter seldom tells the whole story. If you are leaving unvested equity or a bonus behind at your current employer, a make-whole payment is a common request to raise.

How it can end

Many negotiations turn on the termination section. Definitions of cause and, for senior roles, good reason decide whether a departure triggers severance. Notice periods, severance amounts, continued benefits, and whether severance depends on signing a release are all negotiable to varying degrees. Restrictive covenants, including non-compete, non-solicitation, and confidentiality terms, often sit in the same document and are worth negotiating together with severance, since the two are connected in practice. An employer drafting an agreement benefits from definitions precise enough that both sides would read them the same way later.

Disputes and the fine print

Arbitration clauses, choice of law, forum selection, and fee-shifting terms decide how a disagreement would be handled years from now. Under a federal law, sexual harassment and sexual assault claims generally cannot be forced into arbitration if the employee chooses court, so the clause may not reach everything it appears to. We review the draft, mark the terms that carry the most risk for your situation, and suggest changes that are realistic to request. Bring the offer letter, the draft agreement, any equity or bonus plans, and your current agreement if you are moving from another employer, since an existing restriction may limit what you can accept.

02 ATTORNEYS

Who you would be working with

Attorneys at our New York and Washington, D.C. offices handle matters like this one.

05 HOW WE WORK

Client-centered service across jurisdictions

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We deliver coordinated and effective legal services to our clients, utilizing our extensive legal resources and experienced attorneys in our well-integrated global network. Through our Washington D.C. and New York offices, together with our alliance

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Our attorneys are experienced in both domestic and international matters and, with fluency in various languages, provide clear and consistent communication at every stage of your legal process.

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Client service lies at the heart of our operations. From the initial consultation, we prioritize understanding your situation, listening to your goals, and providing regular updates and strategies tailored to your individual case.

Multidisciplinary & Efficient Solutions

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06 OFFICES

Where we meet clients

Consultations are available in person or remotely.

New York

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(855) 529-7557

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(424) 561-7557

Attorney Advertising. This page is general information about employment agreement and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts of each matter, and prior results do not guarantee a similar outcome. Laws differ by state and change over time.