At-will employment and agreements
Most U.S. employment is at-will, meaning either party may end the relationship at any time for any lawful reason, subject to exceptions. Montana is a notable exception with statutory protections. Offer letters and agreements should be consistent with the intended relationship.
Classification
Distinguishing employees from independent contractors, and exempt from non-exempt employees, affects wages, overtime, taxes, and benefits. Tests vary between federal agencies and states.
Common provisions
Confidentiality, invention assignment, and dispute resolution provisions are common. The enforceability of non-competition clauses differs substantially by state, and federal developments continue to evolve.
Policies and handbooks
Handbooks communicate expectations and describe legally required policies. They should be reviewed periodically and adapted to each state where employees work.
Related Reading
For an overview of how this topic connects to everyday business decisions, see our pages on employment & workplace matters and intellectual property.
