Bringing on a new team member is an exciting step, but it also comes with legal and operational risks. Clear employment terms help ensure both parties understand the employee’s role, compensation, and benefits from the outset, reducing the risk of disputes.
Apex Corporate Law is here to help clients in New York, Delaware, and beyond to crystallize these terms through ironclad offer letters and employment agreements, thereby reducing the potential for miscommunication and subsequent disputes.
Building your team
with employment agreements
Offer LetterS
After a candidate accepts a verbal offer, the next step is to provide a written offer letter.
Offer letters outline the key terms of employment and, in New York, are required by law. A typical offer letter will cover things like:
Job title and description
Compensation and benefits package
Bonus structure
Vacation / holidays
Leave policy
Start date
Restrictive covenants (such as non-competes, non-disclosures)
Employment Agreements
Unlike offer letters, employment agreements are not compulsory under New York Law. They are typically reserved for executives or pivotal employees, addressing more intricate matters such as stock options, and non-competition clauses.
Compared to offer letters, employment agreements include additional details regarding job duties and performance obligations, as often times, compensation is linked to performance incentives.
Since these agreements tend to be given to key employees, provisions for compensation may discuss discretionary bonuses, stock options, deferred compensation, and fringe benefits. The agreement also may be for a specified time, only permit termination for cause, and provide for an exit or severance package.
More robust restrictive covenants will be included, to prevent the employee from potentially harming the business, should the arrangement not work out. As will provisions for dispute resolution.
Employee’s rights
As an employer, it’s essential to understand employee rights to avoid costly legal mistakes.
In New York, employment is generally “at-will,” meaning either the employer or the employee may terminate the relationship at any time, with or without cause, unless an agreement states otherwise.
But this does not mean that you can fire employees at will. Federal and State workplace discrimination laws exist for a reason, and cannot be over-written by offer letters and employment agreements.
Given the highly variable nature of these documents, it is paramount to have them reviewed by an attorney. Before an employee starts on their duties, you have leverage to request amendments, and set the rules of the game; once signed, negotiating changes can prove significantly more challenging.
Speak With an Employment Lawyer
Don't leave your employment terms to chance. Whether you're drafting an offer letter or negotiating an employment agreement, our experienced attorneys are here to safeguard your interests and set clear expectations from day one. Contact Apex Corporate Law today to ensure your agreements are comprehensive and legally sound.