Alabama employment contract template

Alabama Employment Contract

This Employment Contract (the “Agreement”) is made and entered into as of [Date], by and between [Employer Legal Name], a [State of Incorporation] corporation with its principal place of business at [Employer Address] (“Employer”), and [Employee Full Legal Name], residing at [Employee Address] (“Employee”).

1. Employment

• Position and Job Title
  • Option A: Employee is hired to perform the duties of [Job Title].
  • Option B: Employee is hired to perform the duties of [Job Title] reporting to [Immediate Supervisor Name].
• Job Description
  • The Employee's duties will include, but not be limited to: [Detailed Job Description].
• Location of Employment
  • Employee will primarily work at [Work Location Address].
• Employment Classification
  • Option A: Full-Time Employment.
  • Option B: Part-Time Employment.
  • Option C: Temporary Employment.
  • Option D: Seasonal Employment.
  • Option E: Independent Contractor (This classification requires a separate Independent Contractor Agreement compliant with Alabama and Federal law).
  • Exempt or Non-Exempt Status:
    • Option A: Exempt. Employee is exempt from overtime pay.
    • Option B: Non-Exempt. Employee is eligible for overtime pay.

2. Term of Employment

• Option A: Fixed Term Employment
  • The term of employment shall commence on [Start Date] and shall terminate on [End Date].
  • Renewal/Extension: This Agreement may be renewed or extended only by written agreement of both parties.
• Option B: At-Will Employment
  • Employee’s employment with Employer is “at-will,” meaning that either Employer or Employee may terminate the employment relationship at any time, with or without cause or notice, subject to applicable law. This is consistent with Alabama’s at-will employment doctrine.
  • Acknowledgement: Employee acknowledges this at-will relationship.
  • Disclaimer: This at-will relationship supersedes any prior or contemporaneous representations or agreements, oral or written.
  • Exception Limitation: Note: Certain public policy exceptions or implied contract limitations under Alabama law may apply and are not waived by this provision.
• Option C: Evaluation and Probationary Period
  • Evaluation Period: Employee will be subject to an evaluation period of [Number] days/months from the commencement of employment.
  • During the evaluation period, the employee's performance will be evaluated, and employment may be terminated if performance is not satisfactory.

3. Compensation

• Base Salary/Hourly Wage
  • Option A: Salary: Employee will be paid a base salary of [Salary Amount] per year, payable [Pay Frequency, e.g., bi-weekly, monthly].
  • Option B: Hourly Wage: Employee will be paid an hourly wage of [Hourly Wage Amount] per hour, payable [Pay Frequency, e.g., bi-weekly, weekly].
• Overtime
  • Option A: Overtime Eligible: If Employee is non-exempt, Employee shall be paid overtime at a rate of one and one-half (1.5) times Employee’s regular hourly rate for all hours worked in excess of forty (40) hours in a workweek, in accordance with the Fair Labor Standards Act (FLSA) and Alabama law.
  • Option B: Overtime Ineligible: If Employee is exempt, Employee is not eligible for overtime pay.
• Pay Frequency and Method
  • Employee will be paid [Pay Frequency, e.g., weekly, bi-weekly, monthly] via [Method of Payment, e.g., direct deposit, check].
• Bonus/Commission/Merit Increases
  • Option A: Bonus: Employee may be eligible for a discretionary bonus as determined by Employer. The terms and conditions of any bonus plan will be provided separately.
  • Option B: Commission: Employee may be eligible for commissions according to a separate commission plan provided to Employee.
  • Option C: Merit Increases: Employee's salary or hourly wage may be reviewed periodically for potential merit increases based on performance. Any merit increase is at the sole discretion of the Employer.

4. Employee Benefits

• Health Insurance
  • Option A: Employee will be eligible to participate in the Employer's health insurance plan, subject to the terms and conditions of the plan.
  • Option B: No health insurance will be provided.
• Dental Insurance
  • Option A: Employee will be eligible to participate in the Employer's dental insurance plan, subject to the terms and conditions of the plan.
  • Option B: No dental insurance will be provided.
• Vision Insurance
  • Option A: Employee will be eligible to participate in the Employer's vision insurance plan, subject to the terms and conditions of the plan.
  • Option B: No vision insurance will be provided.
• Retirement Plan (401(k)/Pension)
  • Option A: Employee will be eligible to participate in the Employer's [401(k) or Pension] plan, subject to the terms and conditions of the plan.
  • Option B: No retirement plan will be provided.
• Life and Disability Insurance
  • Option A: Employer will provide life and disability insurance coverage to Employee, subject to the terms and conditions of the applicable policies.
  • Option B: No life or disability insurance will be provided.
• Holidays
  • Employee will be entitled to [Number] paid holidays per year as designated by Employer.
• Vacation/Paid Time Off (PTO)
  • Employee will accrue [Number] days of vacation/PTO per year, subject to the Employer's PTO policy.
• Sick Leave
  • Employee will accrue [Number] days of sick leave per year, subject to the Employer’s sick leave policy.
• Maternity/Paternity Leave
  • Option A: Employer will provide maternity/paternity leave in accordance with federal and state law.
  • Option B: No additional maternity/paternity leave beyond what is required by law will be provided.
• Voluntary Benefits
  • Employee may be eligible to participate in other voluntary benefit programs offered by Employer.

5. Working Hours and Schedules

• Regular Working Hours
  • Employee’s regular working hours will be [Start Time] to [End Time], [Days of the Week].
• Attendance
  • Employee is expected to be punctual and maintain satisfactory attendance.
• Overtime Authorization
  • All overtime work must be authorized in advance by Employee's supervisor.
• Workplace Conduct and Company Policies
  • Option A: Employee agrees to adhere to the Employer's code of conduct and all other company policies.
  • Option B: Dress Code: Employees will comply with the following dress code: [Detailed Dress Code].
  • Option C: Use of Company Property: Use of company property, including computers and vehicles, must be for business purposes only.
  • Option D: Disciplinary Procedures: Employer’s disciplinary procedures will be followed.

6. Confidentiality, Trade Secrets, and Intellectual Property

• Confidential Information
  • Employee acknowledges that during employment, Employee will have access to confidential information of Employer.
  • Employee agrees to hold all confidential information in strict confidence and not to disclose it to any third party during or after employment.
• Trade Secrets
  • Employee acknowledges that Employer possesses valuable trade secrets.
  • Employee agrees not to use or disclose any of Employer's trade secrets during or after employment.
• Intellectual Property
  • Employee agrees that all inventions, discoveries, and works of authorship created during employment and within the scope of employment shall be the sole property of Employer.
  • Employee hereby assigns all rights, title, and interest in such intellectual property to Employer.
• Option A: Non-Disclosure Agreement: In addition to the above, the Employee acknowledges and agrees to be bound by the Non-Disclosure Agreement attached as Exhibit A.

7. Restrictive Covenants

• Option A: Non-Compete
  • Employee agrees that during employment and for a period of [Number] months/years after termination of employment, Employee will not, directly or indirectly, engage in any business that is competitive with Employer within a radius of [Number] miles of [Location].
  • Alabama Specificity: Employee acknowledges this non-compete agreement is reasonable in time, territory, and scope, and is necessary to protect Employer's legitimate business interests, as required by Alabama law.
• Option B: Non-Solicitation
  • During employment and for a period of [Number] months/years after termination of employment, Employee will not solicit or attempt to solicit any of Employer's clients or employees.
• Option C: Non-Disparagement
  • Employee agrees not to disparage Employer, its products, services, or employees, at any time during or after employment.
• Option D: Absence of Restrictive Covenants: This Agreement contains no non-compete, non-solicitation, or non-disparagement clauses.

8. Separation Procedures

• Notice of Resignation
  • Employee agrees to provide Employer with [Number] days/weeks written notice of resignation.
• Exit Interview
  • Employee agrees to participate in an exit interview upon termination of employment.
• Final Pay
  • Employee's final paycheck will be issued in accordance with Alabama law.

9. Termination

• Voluntary Resignation
  • Employee may terminate employment by providing written notice as specified above.
• Termination for Cause
  • Employer may terminate Employee’s employment for cause, including but not limited to: [List of Examples of Cause].
• Termination Without Cause
  • Employer may terminate Employee’s employment without cause at any time, subject to applicable law.
• Termination Due to Business Reasons
  • Employer may terminate Employee's employment due to business reasons, such as layoffs or reorganizations.
• Notice Period by Employer
  • Option A: Employer will provide [Number] days/weeks written notice of termination.
  • Option B: Employer reserves the right to terminate employment immediately without notice, subject to applicable law.
• Severance
  • Option A: Employer will provide severance pay to Employee in the amount of [Severance Amount] subject to the terms of a separate severance agreement.
  • Option B: No severance pay will be provided.
• Return of Company Property
  • Employee must return all company property, including but not limited to computers, phones, and documents, upon termination of employment.
• Documentation of Grounds for Termination
  • Employer will document the grounds for termination as required by Alabama law.

10. Dispute Resolution

• Option A: Grievance Procedure
  • Any disputes arising out of or relating to this Agreement shall be resolved through the Employer’s established grievance procedure.
• Option B: Mediation
  • The parties agree to attempt to resolve any disputes arising out of or relating to this Agreement through mediation before resorting to litigation.
• Option C: Arbitration
  • Any disputes arising out of or relating to this Agreement shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association.
• Option D: Litigation
  • Any disputes arising out of or relating to this Agreement shall be resolved in the courts of the State of Alabama.
  • Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Alabama.
  • Jurisdiction: The parties agree that the courts of Alabama shall have jurisdiction over any disputes arising out of or relating to this Agreement.

11. Compliance with Laws

• Option A: Anti-Discrimination/Equal Opportunity Employment
  • Employer is an equal opportunity employer and complies with all applicable federal and Alabama laws prohibiting discrimination in employment, including Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA).
• Option B: Harassment Policy
  • Employer maintains a strict policy against harassment of any kind.

12. Workplace Safety

• Option A: OSHA Compliance
  • Employer will comply with all applicable federal OSHA and Alabama state health and safety regulations.
• Option B: Workers' Compensation
  • Employer provides workers' compensation insurance coverage through [Insurance Provider Name], policy number [Policy Number]. Employee agrees to promptly report any work-related injuries to Employer.

13. Employee Privacy

Employee privacy rights are subject to Employer's policies regarding electronic communications, monitoring, and data protection requirements.

14. General Provisions

• Option A: Amendments
  • This Agreement may be amended only by a written instrument signed by both parties.
• Option B: Severability
  • If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
• Option C: Assignment
  • This Agreement may not be assigned by Employee without the prior written consent of Employer.
• Option D: Entire Agreement
  • This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
• Option E: Waiver
  • No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.
• Option F: Successors and Assigns
  • This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

15. Required Disclosures (Alabama Specific)

• Option A: Right-to-Work Notification
  • Alabama is a right-to-work state. Employees have the right to join or not join a union.
• Option B: Prevailing Wage Considerations
  • Applicable only if Employee is working on a government contract subject to prevailing wage laws: Employee acknowledges they may be subject to prevailing wage laws.
• Option C: State-Mandated Leave/Break Policies
  • Employer will comply with all Alabama state-mandated leave and break policies.

16. Execution

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Employer Legal Name]

By: [Employer Representative Name]

Title: [Employer Representative Title]

Date: [Date]

[Employee Full Legal Name]

Signature: ____________________________

Date: [Date]

• Optional: Notarization/Witness/Acknowledgement