Employment
Free At-Will Employment Agreement Template
A full at-will employment agreement covering duties, pay, classification, benefits, leave, policies, confidentiality, arbitration option and separation.
An at-will employment agreement records the terms of a job while confirming either side can end it at any time for any lawful reason. It covers duties, pay, classification, benefits, confidentiality and what happens on separation, and it can override the at-will default only by clear written terms.
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Template
AT-WILL EMPLOYMENT AGREEMENT
This Employment Agreement ("Agreement") is made on [DATE] between [COMPANY LEGAL NAME], [ADDRESS] ("Company"), and [EMPLOYEE NAME], [ADDRESS] ("Employee").
1. POSITION AND DUTIES. Employee will serve as [TITLE], reporting to [TITLE], with the duties described in Exhibit A and others reasonably assigned consistent with the role. Work location: [LOCATION / remote from [STATE]].
2. START DATE. [DATE].
3. AT-WILL EMPLOYMENT. Employment is at will. Either party may end it at any time, with or without cause or notice, for any lawful reason. Nothing in any policy, handbook or oral statement changes this; only a written agreement signed by [TITLE] can. [Employee is asked, but not required, to give [2] weeks' notice of resignation.]
4. CLASSIFICATION AND HOURS. Employee is [exempt / non-exempt] under federal and state wage laws. [Non-exempt: Employee will record all hours worked and be paid for all hours, including overtime.] Normal working hours: [HOURS].
5. COMPENSATION. Base salary of $[AMOUNT] per year [hourly rate of $[AMOUNT]], paid [bi-weekly], less withholdings, reviewed annually. [Bonus: eligible under the Company's bonus plan with a target of [PERCENT]% of base salary, based on [CRITERIA]; the plan document controls eligibility and timing.]
6. EQUITY [OPTIONAL]. Subject to board approval, a grant of [NUMBER] [options/RSUs] vesting over [4] years with a [1]-year cliff, governed by the equity plan and award agreement.
7. BENEFITS AND LEAVE. Employee may participate in the Company's benefit plans, subject to plan terms. Employee accrues [NUMBER] days of paid time off per year [under the PTO policy, including any payout rules on separation required by state law], plus paid sick leave and other leave required by law. Holidays: [LIST OR POLICY].
8. EXPENSES. The Company will reimburse reasonable business expenses under its policy, including necessary expenses as required by state law.
9. POLICIES. Employee will follow the Company's written policies, which may be updated with notice. If a policy conflicts with this Agreement, this Agreement controls.
10. CONFIDENTIALITY AND IP. Employee will sign the Company's Confidential Information and Invention Assignment Agreement, which is incorporated here.
11. OUTSIDE ACTIVITIES. Employee may engage in outside activities that do not conflict with the Company's business, use Company resources or interfere with Employee's duties. Employee will disclose any outside business activity that may present a conflict.
12. SEPARATION. On separation for any reason, the Company will pay all earned wages and any accrued, unused PTO required by law within the time required by state law, and Employee will return Company property. [Severance: If the Company ends employment without cause, and Employee signs a release, the Company will pay [NUMBER] weeks of base salary and [NUMBER] months of COBRA premiums.]
13. DISPUTE RESOLUTION [OPTIONAL]. [If using arbitration, attach a separate arbitration agreement that allows claims to be brought in small claims court, does not require Employee to pay arbitration fees beyond court filing fees, excludes claims that cannot be arbitrated by law (including sexual harassment and sexual assault claims at Employee's election), and preserves the right to file charges with government agencies.] Otherwise, disputes will be heard in the courts of [COUNTY, STATE].
14. PROTECTED RIGHTS. Nothing in this Agreement limits Employee's right to discuss wages and working conditions, report possible violations of law to a government agency, or disclose information about unlawful workplace conduct.
15. GOVERNING LAW. This Agreement is governed by the laws of [STATE WHERE EMPLOYEE WORKS].
GENERAL PROVISIONS
(a) Notices. Notices must be in writing and sent to the addresses or emails above (or as later updated by notice). Email notice is effective when sent, unless the sender receives a delivery failure message.
(b) Entire agreement. This agreement, with any schedules and exhibits, is the entire agreement between the parties on its subject and replaces all prior discussions and agreements on that subject.
(c) Amendments and waivers. Changes must be in writing and signed by both parties. A failure or delay in enforcing any term is not a waiver of it.
(d) Severability. If any provision is found unenforceable, it will be limited to the minimum extent necessary and the rest of this agreement will remain in effect.
(e) Assignment. Neither party may assign this agreement without the other party's written consent, except to a successor in a merger or sale of substantially all of its business, on notice.
(f) Relationship. Nothing in this agreement creates a partnership, joint venture or agency relationship unless expressly stated.
(g) Counterparts and electronic signatures. This agreement may be signed in counterparts and by electronic signature, each of which is an original and together form one agreement.
(h) Independent advice. Each party has had the opportunity to review this agreement with its own legal counsel and signs it voluntarily.
COMPANY: ______________________ Name/Title: ______________ Date: __________
EMPLOYEE: _____________________ Date: __________
EXHIBIT A: Duties
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This free template is provided by ClauseAudit for general informational purposes and is not legal advice. Have it reviewed before use. Replace all [BRACKETED] placeholders.When to use this template
- Hiring an employee and wanting a complete written agreement rather than just an offer letter.
- An employee comparing a proposed employment agreement against balanced terms.
- Documenting severance, bonus or equity terms clearly.
How to fill it in
- Describe duties in Exhibit A and confirm exempt or non-exempt classification.
- Set pay, bonus eligibility and any equity.
- Confirm PTO payout rules for your state.
- Decide whether to offer severance on termination without cause.
- If using arbitration, use a fair, separate agreement; otherwise name a court.
Key clauses to check
- At-will statement
- Either side can end employment; Montana is a notable exception for non-probationary employees.
- Classification
- Decides overtime; misclassification is costly.
- PTO payout
- Some states require payment of accrued vacation on separation.
- Arbitration
- Some claims cannot be forced into arbitration, and unfair terms may not be enforced.
- Protected rights
- Required to avoid restricting legally protected activity.
State-specific notes: CA, TX, NY, FL, IL
Employment rules that affect this template in the five largest states, summarized as of 2025. Laws change and cities add their own rules, so confirm the current law before signing.
California
- Employers cannot require employees who primarily live and work in California to agree to another state’s law or courts for employment disputes (Labor Code §925).
- Labor Code §2870 bars assignment of inventions made on the employee’s own time without company resources that do not relate to the business, and employers must give written notice of this.
- Final wages are due immediately on termination, and within 72 hours if an employee quits without notice (immediately with 72 hours’ notice). Late payment triggers waiting-time penalties.
- Accrued, unused vacation is earned wages and must be paid out on separation; “use it or lose it” policies are not allowed.
- Employers must reimburse necessary business expenses, including a reasonable share of personal phone and internet used for work (Labor Code §2802).
- Employees are entitled to paid sick leave, currently at least 40 hours or five days per year.
Texas
- Final pay is due within six calendar days after a discharge, and by the next regular payday after a resignation.
- Payout of unused vacation depends on the employer’s written policy or agreement.
- Texas has no statute limiting invention assignments, so the agreement’s scope controls; keep it limited to work-related inventions.
- Texas has no general law requiring employers to reimburse business expenses, but under federal wage law unreimbursed work expenses cannot reduce an employee’s pay below minimum wage.
New York
- Since 2023, Labor Law §203-f bars assignment of inventions made on the employee’s own time without company resources that do not relate to the business.
- Final wages are due by the next regular payday after separation.
- Unused vacation must be paid out unless a written policy clearly says otherwise.
- Employers that electronically monitor phone, email or internet use must give written notice and get acknowledgment on hiring.
- Paid sick leave is required statewide, from 40 to 56 hours depending on employer size.
Florida
- Florida has no specific final-paycheck deadline or vacation payout statute; the employer’s policy and agreement control.
- Florida has no statute limiting invention assignments; the agreement’s scope controls.
- Florida has no general law requiring employers to reimburse business expenses, but under federal wage law unreimbursed work expenses cannot reduce an employee’s pay below minimum wage.
Illinois
- The Employee Patent Act bars assignment of inventions made entirely on the employee’s own time without company resources that do not relate to the business.
- Final compensation, including earned vacation, is due by the next regular payday after separation.
- Employers must reimburse necessary business expenses incurred within the scope of employment (820 ILCS 115/9.5).
- The Paid Leave for All Workers Act (2024) entitles most employees to at least 40 hours of paid leave per year, with separate rules in Chicago and Cook County.
Another state? See the rules for all 50 states and DC.
Frequently asked questions
What does at-will employment mean?
Either you or the employer can end employment at any time for any lawful reason, with or without notice.
Can an at-will employee get severance?
Only if the agreement or a policy provides it, or it is negotiated at separation.
Is Montana an at-will state?
Montana generally requires good cause to dismiss employees after a probationary period.
Can I be fired for no reason in an at-will job?
In most states, yes. At-will employment means an employer can end the job for any reason or no reason, with or without notice, as long as the reason is not illegal. Illegal reasons include discrimination, retaliation for complaints or whistleblowing, and taking protected leave. Some states also recognize exceptions based on public policy or implied promises.
Does an at-will agreement need to be in writing?
No. Employment in most of the US is presumed to be at will even without a written agreement. Employers often put it in writing to avoid claims that promises in interviews or handbooks created job security. Read the full document, since some at-will agreements also include arbitration, confidentiality or non-compete terms that carry more weight than the at-will statement itself.
Want to check if a contract is fair before you sign?
If someone sent you a employment contract, don't guess. We flag risky clauses in plain English, tuned to your state, with a downloadable report and suggested-fix redline.
Read before you sign
- Are Employment Contracts Legally Binding? What Each Side Can EnforceAre employment contracts enforceable? Mostly yes, but at-will status and state law limit what each side can enforce. See which clauses usually hold up.
- Can an Employer Change Your Employment Contract After You Sign?Can an employer change your employment contract after you sign? At-will terms, usually yes going forward. Fixed-term contracts need your agreement.
- Contract-to-Hire Offer: What to Check Before You ConvertA contract-to-hire role changes your pay, taxes, benefits and restrictions when you convert. Here is what to check in both the contractor agreement and the conversion offer.
- Mandatory Arbitration Clauses: What You Are Actually Giving UpMandatory arbitration in an employment or consumer contract quietly removes important rights. Here is what it does, what a class-action waiver adds, and what you can still negotiate.
More Employment templates
This free template is general information, not legal advice, and is no substitute for a qualified attorney. Laws vary by state; have it reviewed by a lawyer before you use or sign it.