Employment Contracts

Enforceability varies significantly by state. Most states require reasonable limitations on duration, geographic scope, and restricted activities. Some states like California largely prohibit non-competes, and federal regulation of non-competes continues to evolve.

Executive agreements typically include enhanced compensation packages, equity or incentive provisions, change-in-control protections, severance arrangements, expanded restrictive covenants, and bespoke termination provisions beyond standard employment terms.

Offer letters are simpler documents suitable for standard positions. Formal agreements are advisable for executives, key employees, roles involving significant IP or trade secrets, and positions requiring robust restrictive covenants.

Separation agreements typically include severance payment terms, a general release of claims, confidentiality provisions, non-disparagement clauses, cooperation obligations, and confirmation of post-employment restrictive covenants. They must comply with OWBPA requirements for employees over 40.