Michigan employment contract template

Michigan Employment Contract

This Employment Contract ("Agreement") is made and entered into as of [Date], by and between [Employer Name], a [State] [Entity Type], with its principal place of business at [Employer Address] ("Employer"), and [Employee Name], residing at [Employee Address] ("Employee").

1. Employment Details:

• Job Title and Description:
  • Option A: The Employee is hired as [Job Title].
  • Option B: The Employee's job duties and responsibilities are detailed in Exhibit A, attached hereto and incorporated herein.
  • Direct Supervisor: The Employee will report directly to [Supervisor Name].
• Department: The Employee will be a member of the [Department Name] Department.
• Work Location:
  • Option A: The Employee's primary work location will be [Work Location Address].
  • Option B: The Employee may be required to work at other locations as reasonably requested by the Employer.
• Employment Type:
  • Option A: Full-time
  • Option B: Part-time
  • Option C: Temporary
  • Option D: Seasonal
  • Option E: Intern
• FLSA Status:
  • Option A: Exempt from overtime pay.
  • Option B: Non-exempt from overtime pay and entitled to overtime compensation in accordance with applicable law.

2. Employment Term:

• At-Will Employment:
  • Option A: The employment relationship is at-will, meaning that either the Employee or the Employer may terminate the employment at any time, with or without cause or notice, subject to applicable law.
  • Option B: The at-will nature of this employment does not alter the Employee’s rights and obligations under any separate agreements.
  • At-Will Termination Clause: The at-will nature of this Agreement does not alter the Employer’s obligation to comply with applicable federal and Michigan anti-discrimination laws.
  • Option to Remove: Remove at-will language (for fixed-term employment).
• Fixed-Term Employment:
  • Option A: The employment relationship shall commence on [Start Date] and end on [End Date].
  • Option B: Renewal of this Agreement is subject to satisfactory performance and mutual agreement by both parties.
  • Performance Evaluation Criteria: The Employee's performance will be evaluated based on the criteria outlined in Exhibit B, attached hereto and incorporated herein.
• Probationary Period:
  • Option A: The first [Number] days of employment shall be considered a probationary period, during which the Employer may terminate the Employee's employment for any reason.
  • Option B: Successful completion of the probationary period does not alter the at-will nature of the employment (if applicable).

3. Compensation:

• Base Wage/Salary:
  • Option A: The Employee shall receive a base salary of [Salary Amount] per year, payable [Pay Frequency, e.g., bi-weekly].
  • Option B: The Employee shall receive an hourly rate of [Hourly Rate].
• Payment Method:
  • Option A: Direct deposit
  • Option B: Check
• Commissions:
  • Option A: The Employee is eligible to receive commissions pursuant to the commission plan attached hereto as Exhibit C and incorporated herein.
  • Option B: The Employee is not eligible for commissions.
• Bonuses:
  • Option A: The Employee is eligible for bonuses based on performance and company profitability, as determined by the Employer in its sole discretion.
  • Option B: The Employee is not eligible for bonuses.
• Overtime:
  • Option A: If non-exempt, the Employee shall be paid overtime at a rate of one and one-half (1.5) times their 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 Michigan law.
  • Option B: Overtime must be pre-approved by [Approving Authority].
• Deductions:
  • Option A: Standard deductions for taxes and other legally required withholdings will be made from the Employee's compensation.
  • Option B: Additional deductions may be made for benefits elections as authorized by the Employee.

4. Benefits:

• Health Insurance:
  • Option A: The Employee is eligible to participate in the Employer's health insurance plan, subject to the terms and conditions of the plan. Eligibility begins [Waiting Period].
  • Option B: The Employer offers a choice of health insurance plans as detailed in Exhibit D.
  • Option C: The Employee is not eligible for health insurance at this time.
• Dental Insurance:
  • Option A: The Employee is eligible to participate in the Employer's dental insurance plan, subject to the terms and conditions of the plan. Eligibility begins [Waiting Period].
  • Option B: The Employee is not eligible for dental insurance at this time.
• Vision Insurance:
  • Option A: The Employee is eligible to participate in the Employer's vision insurance plan, subject to the terms and conditions of the plan. Eligibility begins [Waiting Period].
  • Option B: The Employee is not eligible for vision insurance at this time.
• Life Insurance:
  • Option A: The Employer provides basic life insurance coverage for the Employee. Details are available in the benefits summary.
  • Option B: The Employee is not eligible for life insurance at this time.
• Disability Benefits:
  • Option A: The Employee is eligible for short-term and long-term disability benefits as outlined in the benefits summary. Eligibility begins [Waiting Period].
  • Option B: The Employee is not eligible for disability benefits at this time.
• 401(k)/Retirement Plan:
  • Option A: The Employee is eligible to participate in the Employer's 401(k) plan, subject to the terms and conditions of the plan. Eligibility begins [Waiting Period].
  • Option B: The Employer will match employee contributions up to [Percentage] of salary.
  • Option C: The Employee is not eligible for a 401(k) or retirement plan at this time.
• Paid Time Off (PTO):
  • Option A: The Employee will accrue [Number] days of paid time off per year, for vacation, sick leave, and personal days, subject to the Employer's PTO policy.
  • Option B: The Employee will accrue [Number] days of vacation and [Number] days of sick leave per year.
  • Option C: Details of the PTO policy are available in the Employee Handbook.
• Holidays:
  • Option A: The Employee is entitled to [Number] paid holidays per year, as designated by the Employer.
  • Option B: The specific holiday schedule is outlined in the Employee Handbook.

5. Employee Conduct:

• Working Hours: The Employee's regular working hours are [Start Time] to [End Time], [Days of the Week].
• Attendance: The Employee is expected to maintain satisfactory attendance and punctuality.
• Remote/Hybrid Work:
  • Option A: The Employee may be eligible for remote or hybrid work arrangements, subject to the Employer's policies and approval.
  • Option B: The Employee's role is fully on-site and does not allow for remote work.
• Dress Code: The Employee is expected to adhere to the Employer's dress code, as outlined in the Employee Handbook.
• Drug-Free Workplace: The Employer maintains a drug-free workplace. The Employee may be subject to drug testing in accordance with company policy and applicable law.
• Performance Standards: The Employee is expected to perform their duties to the best of their ability and in a professional manner.
• Confidentiality: The Employee shall maintain the confidentiality of all proprietary information of the Employer.
• Anti-Harassment: The Employer prohibits harassment of any kind. The Employee is expected to comply with the Employer's anti-harassment policy.
• Electronic Communications: The Employee's use of electronic communications systems is subject to the Employer's policies.

6. Intellectual Property and Confidentiality:

• Non-Disclosure: The Employee agrees to hold confidential all proprietary information of the Employer, both during and after employment.
• Assignment of Inventions:
  • Option A: The Employee agrees to assign to the Employer all rights, title, and interest in any inventions, discoveries, or improvements conceived or made by the Employee during their employment, related to the Employer's business.
  • Option B: This assignment includes all patent rights.
• Trade Secret Protection: The Employee acknowledges that the Employer possesses valuable trade secrets and agrees to protect them from unauthorized disclosure.
• Option to Include/Remove: Include/remove in-depth intellectual property assignment clauses as desired (detailed in Exhibit E).

7. Restrictive Covenants:

• Non-Compete:
  • Option A: The Employee agrees not to engage in any business that competes with the Employer's business within [Geographic Scope] for a period of [Duration] following termination of employment.
  • Option B: This non-compete agreement is limited to [Restricted Activities].
• Non-Solicitation:
  • Option A: The Employee agrees not to solicit the Employer's customers or employees for a period of [Duration] following termination of employment.
  • Option B: This includes direct or indirect solicitation.
• Non-Disparagement: The Employee agrees not to disparage the Employer, its products, or its employees, at any time.
• Non-Poaching: The Employee agrees not to recruit or hire any of the Employer's employees for a period of [Duration] following termination of employment.
• Option to Include/Remove: Include/remove restrictive covenants (Michigan law requires reasonable limitations; consult legal counsel).

8. Separation Procedures and Final Pay:

• Voluntary Resignation: The Employee must provide [Number] days written notice of resignation. The Employee must return all Employer property upon termination.
• Involuntary Termination:
  • Option A: If at-will, the Employer may terminate the Employee's employment at any time, with or without cause or notice, subject to applicable law.
  • Option B: If not at-will, termination for cause requires [Definition of Cause].
  • Exit Interview: The Employee may be required to participate in an exit interview.
• Severance:
  • Option A: The Employee may be eligible for severance pay, subject to the terms of a separate severance agreement.
  • Option B: The Employee is not eligible for severance pay.
• Final Pay: The Employee will receive their final paycheck, including all accrued but unused vacation time (if applicable), in accordance with Michigan law.
• COBRA: The Employer will provide the Employee with information regarding COBRA continuation coverage.

9. Dispute Resolution:

• Internal Grievance Procedure: The Employer has an internal grievance procedure, outlined in the Employee Handbook.
• Mediation:
  • Option A: Any disputes arising out of or relating to this Agreement shall be submitted to mediation in [City, State].
  • Option B: Mediation fees shall be shared equally by the parties.
• Arbitration:
  • Option A: Any disputes arising out of or relating to this Agreement shall be settled by binding arbitration in accordance with the rules of the American Arbitration Association.
  • Option B: The arbitration shall take place in [City, State].
• Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan.
• Jurisdiction: Any legal action arising out of this Agreement shall be brought in the state or federal courts located in [County, Michigan].
• Waiver of Jury Trial:
  • Option A: The parties hereby waive their right to a jury trial in any action arising out of or relating to this Agreement.
  • Option B: Remove waiver of jury trial provision.

10. Health and Safety:

• Compliance with MIOSHA: The Employer will comply with all applicable workplace health and safety regulations under the Michigan Occupational Safety and Health Administration (MIOSHA).
• Workers' Compensation: The Employee is covered by the Employer's workers' compensation insurance.
• Safety Expectations: The Employee is expected to adhere to all safety rules and procedures.
• Reporting Obligations: The Employee must report any workplace accidents or injuries to [Designated Contact] immediately.

11. Anti-Discrimination and Equal Opportunity:

• Equal Employment Opportunity: The Employer is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex (including gender identity), age, disability, national origin, marital status, height, weight, genetic information, or any other characteristic protected by law.
• Compliance with Elliott-Larsen Civil Rights Act: The Employer complies with the Michigan Elliott-Larsen Civil Rights Act.
• Anti-Harassment Policy: The Employer prohibits harassment of any kind. Details are in the Employee Handbook.
• Option to Include/Remove: Include/remove detailed anti-harassment policy provisions.

12. Other Policies:

• Background Checks:
  • Option A: Employment is contingent upon successful completion of a background check.
  • Option B: The scope of the background check is detailed in Exhibit F.
• Drug Testing:
  • Option A: The Employee may be subject to drug testing in accordance with company policy and applicable law.
  • Option B: The drug testing policy is detailed in Exhibit G.
• Probationary Period: (See Section 2)
• Employee Handbook: The Employee is expected to read and comply with the Employer's Employee Handbook.
• Criminal Convictions: The Employee is required to disclose any criminal convictions (excluding minor traffic violations) to the Employer.
• Reference Consent: The Employee authorizes the Employer to contact previous employers for references.

13. General Provisions:

• Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written, relating to the subject matter hereof.
• Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
• Amendment: This Agreement may be amended only by a written instrument signed by both parties.
• Assignment: This Agreement may not be assigned by either party without the prior written consent of the other party.
• 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.
• Notice: All notices under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by overnight courier, to the addresses set forth above.
• Signatures: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

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

[Employer Name]

By: [Employer Representative Name]

Title: [Employer Representative Title]

[Employee Name]

Signature: ____________________________

Date: [Date]