Employment contracts serve as a written agreement between an employer and employee that describes the terms and conditions of the relationship, including compensation, benefits, and duties. New York employers must adhere to the state laws when creating contracts that bind the two parties. To ensure compliance with statutes and regulations, it’s important to craft contracts utilizing the right employment contract template.

This article will highlight frequently asked questions regarding New York employment contracts, which can serve as a guide to businesses.

What Should Be Included in a New York Employment Contract?

Typically, a New York employment contract should include the following:

Employment term and conditions.

Job title.

Definition of duties and job responsibilities.

Compensation and benefits.

Conditions of employment.

Restrictive covenant.

At-will employment clause.

What Is a Noncompete Agreement?

A noncompete agreement is an employment contract clause that restricts employees from working with competitors or starting their own business for a specified period of time and geographical area.

Though noncompete agreements are enforceable in New York, under the state’s Doctrines of Reasonableness, companies are limited in the scope of their enforcement. If their provisions are too broad, they can be deemed unlawful.

What Is at-Will Employment?

At-will employment is the principle that employees do not have an agreement that guarantees them a certain term of employment. Under New York state labor laws, employees are considered “at-will” unless they are contractually obligated for a specific period of time.

Employers are generally free to terminate their staff “at-will” for various reasons, unless the employee is law-protected (i.e. against discrimination).

Are Arbitration Clauses Included in New York Employment Contracts?

Yes, employers may include arbitration clauses in their New York contracts. Though an arbitration clause is an enforceable binding agreement, New York courts limit their application. Specifically, employers can only include arbitration clauses if they are applicable to certain matters, such as claims of wrongful discharge, damages, and defamation.

What Is a Severance Agreement?

A severance agreement is an employment contract clause that outlines the terms of a worker’s termination. Severance agreements are most often included to document the division of any monetary compensation when a worker leaves a company.

For instance, severance agreements may outline lump-sum payments, extended benefits and other bonuses. In New York state, severance agreement contracts must adhere to the state Employment Security Law.

To conclude

Though employers may craft employment agreements using templates, it is important that business owners consult legal counsel to ensure compliance with state employment laws. Each employment contract should be tailored utilizing the latest legislative requirements and precedent rulings.

Topics:

Employment Contract Template,

Noncompete Agreement,

At-Will Employment