As the climate of the current job market changes in Los Angeles, most companies are finding it crucial to protect their employers, while also ensuring that the employee is well taken care of. This means having the right protection in place for both sides: An employment contract. But what should you consider when making this type of agreement?

Getting an employment contract right can be a difficult and complicated process. It’s important to understand the factors that should be included and the types of language that can be used. Negotiations can be tricky, and having an experienced lawyer on hand can ease the process. Whether you're a small business or a large corporation, the following five points are key components to consider when creating an employment contract in Los Angeles.

Duration of Employment

When signing a contract, it is important to determine the duration of employment. Depending on the business, a term may be for a set number of years or it may be for a certain job or project. It is important to clearly define how long employment will last in the agreement so both parties know what to expect.

Scope of Job Responsibilities

A job description is a major component of an agreement as well. It lays out exactly what tasks are expected to be performed by the employee. It is important to be thorough and clear when writing out job duties, so that there is no conflicting communication down the line.


The compensation section should include details such as salary, incentives, benefits, bonuses, and more. It is important for both the employee and employer to agree upon what the compensation package looks like upfront. This can help avoid any potential problems later on.

Non-Compete Clause

A non-compete clause states that the employee agrees not to work for or start a competing business while employed with the organization. This is common practice in certain industries, and should be clearly outlined in the contract.


Whether it is a small business or a major corporation, companies often possess trade secrets and confidential information. It’s important to establish a confidentiality clause that prohibits the employee from disclosing company information while employed at the company.

Employment contracts are becoming increasingly more complicated due to the changing landscape of the job market. It is important to take into consideration these five aspects of an employment contract when crafting one. It is also beneficial to have experienced legal counsel for a more successful agreement. UpCounsel has an expansive network of experienced lawyers to help provide cost-effective legal services to organizations looking to create an employment contract.


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