North Carolina employment contract template
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How North Carolina employment contract Differ from Other States
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North Carolina follows strict at-will employment, allowing either party to terminate the relationship at any time, barring illegal reasons.
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Non-compete and restrictive covenants are enforceable but subject to more rigorous review and specific statutory requirements in North Carolina.
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North Carolina does not require a written employment contract except for specific arrangements, unlike some states with stricter formalities.
Frequently Asked Questions (FAQ)
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Q: Is a written employment contract required in North Carolina?
A: No, a written contract is not required for most jobs, but having one is recommended to clarify terms and avoid disputes.
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Q: Are non-compete agreements enforceable in North Carolina?
A: Yes, but they must be reasonable in duration, geographic scope, and necessary to protect legitimate business interests.
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Q: Can an employer terminate an employee for any reason in North Carolina?
A: Generally, yes. North Carolina is an at-will employment state, unless restricted by contract or law.
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North Carolina Employment Contract
This Employment Contract (the “Agreement”) is made and entered into as of [Date], by and between [Employer Legal Name], a [Employer Entity Type, e.g., Corporation] with its principal place of business at [Employer Address] (the “Employer”), and [Employee Full Name], residing at [Employee Address] (the “Employee”).
1. Employment
1.1. Position
Option A: The Employer hereby employs the Employee in the position of [Job Title].
Option B: The Employer hereby employs the Employee in the position of [Job Title], reporting to [Supervisor/Manager Name], in the [Department/Division] department.
1.2. Duties and Responsibilities
Option A: The Employee shall perform the duties and responsibilities as outlined in the attached Job Description (Exhibit A), which may be modified by the Employer from time to time.
Option B: The Employee shall perform the following duties and responsibilities:
[List of Duties and Responsibilities]
Option C: The Employee agrees to perform such other duties as are customarily associated with the Employee’s position and as may be reasonably assigned by the Employer from time to time.
1.3. Work Location
Option A: The Employee’s primary work location shall be [City, State].
Option B: The Employee's work location will primarily be remote.
Option C: The Employee's work location will primarily be at [Location/Address], however travel may be required.
2. Employment Classification and Term
2.1. Classification
Option A: The Employee is classified as a full-time employee.
Option B: The Employee is classified as a part-time employee.
Option C: The Employee is classified as an exempt employee, not eligible for overtime pay.
Option D: The Employee is classified as a non-exempt employee, eligible for overtime pay as required by North Carolina and federal law.
Option E: The Employee is classified as an independent contractor. (See Section 12)
2.2. Term
Option A: The employment relationship is "at-will," meaning that either the Employer or the Employee may terminate the employment at any time, with or without cause or notice, subject to applicable law. This Agreement does not constitute a contract for any specific term.
Option B: This is a fixed-term employment contract commencing on [Start Date] and ending on [End Date]. Renewal of this contract is subject to mutual agreement.
2.3. Probationary Period
Option A: The Employee’s employment is subject to a [Number]-day probationary period commencing on the Effective Date. During this probationary period, the Employer may terminate the Employee’s employment at any time, with or without cause.
Option B: There is no probationary period.
3. Compensation
3.1. Base Salary/Wage
Option A: The Employer shall pay the Employee a base salary of [Salary Amount] per year, payable in accordance with the Employer's standard payroll schedule.
Option B: The Employer shall pay the Employee an hourly wage of [Wage Amount] per hour, payable in accordance with the Employer's standard payroll schedule.
3.2. Overtime
Option A: As a non-exempt employee, the Employee shall be entitled to overtime pay 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 North Carolina law.
Option B: As an exempt employee, the Employee is not eligible for overtime pay.
3.3. Bonus/Commission
Option A: The Employee shall be eligible for a bonus in accordance with the Employer’s bonus plan, as it may be amended from time to time. Details of the bonus plan are described in Exhibit B.
Option B: The Employee shall be eligible to earn commissions according to the commission schedule outlined in Exhibit C.
Option C: The Employee is not eligible for bonuses or commissions.
3.4. Wage Deductions:
Option A: All deductions from the Employee's wages shall be in accordance with North Carolina law.
Option B: Allowable deductions include, but are not limited to: federal and state income taxes, social security taxes, Medicare taxes, insurance premiums if elected and authorized, and garnishments or levies as required by law or court order.
3.5. Reimbursements
Option A: The Employee shall be reimbursed for reasonable and necessary business expenses incurred in connection with their employment, in accordance with the Employer’s expense reimbursement policy.
Option B: Employee will not be reimbursed for expenses.
4. Benefits
4.1. Benefits Package
Option A: The Employee shall be eligible to participate in the Employer’s benefits plans, including health insurance, dental insurance, vision insurance, 401(k) or retirement plan, life insurance, disability insurance, and other benefits, subject to the terms and conditions of those plans.
Option B: The Employee shall be eligible for the following benefits:
Health Insurance: [Yes/No]
Dental Insurance: [Yes/No]
Vision Insurance: [Yes/No]
401(k) or Retirement Plan: [Yes/No]
Paid Time Off: [Yes/No] (See Section 5)
Other: [List Other Benefits]
Option C: The Employee is not eligible for benefits.
4.2. Eligibility and Waiting Periods: Eligibility for benefits is subject to plan documents. Benefit waiting period [Waiting Period Details].
5. Paid Time Off (PTO) and Leave
5.1. Vacation
Option A: The Employee shall accrue vacation time in accordance with the Employer’s vacation policy.
Option B: The Employee shall be entitled to [Number] days of paid vacation per year.
5.2. Holidays
Option A: The Employee shall be entitled to the Employer’s standard paid holidays.
Option B: The Employee shall be entitled to the following paid holidays: [List of Holidays].
5.3. Sick Leave
Option A: The Employee shall accrue sick leave in accordance with the Employer’s sick leave policy.
Option B: The Employee shall be entitled to [Number] days of paid sick leave per year.
5.4 Other Leaves
Option A: The employee is eligible for parental leave according to the company's parental leave policy.
Option B: The employee is eligible for unpaid leave in accordance with the Family and Medical Leave Act (FMLA).
Option C: The employee is eligible for military leave as required by state and federal law.
6. Work Schedule
6.1. Regular Hours
Option A: The Employee’s regular work schedule shall be [Number] hours per week, Monday through Friday, from [Start Time] to [End Time].
Option B: The Employee’s regular work schedule shall be [Number] hours per week, on the following days: [Days of the Week], from [Start Time] to [End Time].
6.2. Breaks
Option A: The Employee shall be entitled to meal and rest breaks as required by North Carolina law.
Option B: The Employee shall be entitled to a [Number]-minute unpaid meal break and [Number]-minute paid rest breaks per [Number]-hour shift.
6.3. Overtime
Option A: The Employee may be required to work overtime from time to time, as needed by the Employer.
Option B: Overtime work requires prior authorization from the employee's supervisor.
6.4. Telecommuting
Option A: The Employee may be eligible to telecommute, subject to the Employer’s telecommuting policy.
Option B: Telecommuting is not permitted for this position.
7. Conduct Requirements
7.1. Company Policies
Option A: The Employee shall adhere to all of the Employer’s policies and procedures, as they may be amended from time to time.
Option B: The employee will receive a copy of the company's employee handbook.
7.2. Ethical Conduct
Option A: The Employee shall conduct themselves ethically and professionally at all times.
Option B: The Employee is responsible for reading and understanding the company's code of conduct and ethics policy.
8. Intellectual Property
8.1. Assignment
Option A: The Employee agrees that all inventions, discoveries, works of authorship, and other intellectual property created by the Employee during the course of their employment shall be the sole property of the Employer.
Option B: The provisions of this section apply to all inventions, discoveries, and works of authorship relating to the business of the Employer.
Option C: This Section 8 does not apply to work the employee previously created.
8.2. Confidentiality
Option A: The Employee agrees to protect the Employer’s confidential information during and after the term of their employment.
Option B: The Employee will sign a separate Non-Disclosure Agreement (NDA) as a condition of employment.
9. Restrictive Covenants
9.1. Non-Compete
Option A: During the term of their employment and for a period of [Number] months following the termination of their employment, the Employee shall not, directly or indirectly, engage in any business that is competitive with the Employer’s business within a [Number]-mile radius of the Employer’s principal place of business. The parties agree that this non-compete agreement is reasonable as to time, geographic scope, and activity restrictions and is necessary to protect the Employer's legitimate business interests.
Option B: The non-compete provisions of this agreement do not apply.
9.2. Non-Solicitation
Option A: During the term of their employment and for a period of [Number] months following the termination of their employment, the Employee shall not solicit any of the Employer’s employees or customers.
Option B: The non-solicitation provisions of this agreement do not apply.
9.3. Non-Disparagement
Option A: The Employee agrees not to disparage the Employer, its officers, directors, or employees, either during or after the term of their employment.
Option B: The non-disparagement provisions of this agreement do not apply.
10. Termination
10.1. Voluntary Resignation
Option A: The Employee may resign from their employment at any time, subject to providing the Employer with [Number] days written notice.
Option B: No advance notice of resignation is required.
10.2. Involuntary Termination
Option A: The Employer may terminate the Employee’s employment at any time, with or without cause, subject to applicable law.
Option B: The Employer may only terminate the employee for cause.
10.3. Severance
Option A: In the event of an involuntary termination without cause, the Employee shall be entitled to severance pay in the amount of [Number] weeks of salary.
Option B: The employee is not eligible for severance pay.
10.4. Return of Property
Upon termination of employment, the Employee shall promptly return all of the Employer’s property, including but not limited to computers, mobile devices, documents, and confidential information.
10.5. Final Pay
The Employer shall pay the Employee their final wages in accordance with North Carolina law.
11. Compliance with Laws
11.1. Anti-Discrimination
The Employer is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex, national origin, age, disability, or any other protected characteristic.
11.2. Harassment-Free Workplace
The Employer is committed to providing a harassment-free workplace.
11.3. Employee Acknowledgment:
The employee acknowledges that they have received and reviewed the company's anti-discrimination and harassment policies.
12. Independent Contractor
12.1 The parties acknowledge that the Employee is an independent contractor and is solely responsible for all federal, state, and local taxes, as well as all withholdings for social security, Medicare, and any other applicable taxes or contributions.
12.2 This agreement does not create an employer-employee relationship.
13. Dispute Resolution
13.1. Internal Grievance Process
Option A: In the event of a dispute, the Employee shall first attempt to resolve the dispute through the Employer’s internal grievance process.
Option B: The employee should first attempt to resolve the dispute with their direct supervisor.
13.2. Mediation
Option A: If the dispute cannot be resolved through the internal grievance process, the parties agree to submit the dispute to mediation.
Option B: If the dispute cannot be resolved with a supervisor, the parties agree to submit the dispute to mediation.
13.3. Arbitration
Option A: Any dispute 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 B: Arbitration is not required, and either party may pursue legal action in a court of law.
13.4. Choice of Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina. The venue for any legal action shall be in [County Name] County, North Carolina.
14. Workers’ Compensation
The Employee is covered by the Employer’s workers’ compensation insurance policy in accordance with North Carolina law. Any work-related injuries must be reported to the Employer immediately.
15. Recordkeeping and Access to Personnel Files
The Employer shall maintain personnel files for all employees in accordance with North Carolina law. The Employee shall have the right to access their personnel file upon reasonable request.
16. Background Check
Option A: The Employee’s employment is contingent upon the successful completion of a background check.
Option B: The employee's employment does not require a background check.
17. Modification
This Agreement may be modified or amended only by a written instrument signed by both parties.
18. 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.
19. Severability
If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
20. 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.
21. Survival
The provisions of Sections 8 (Intellectual Property), 9 (Restrictive Covenants), 10.4 (Return of Property), and 13 (Dispute Resolution) shall survive the termination of this Agreement.
22. E-Verify
Employer participates in E-Verify and will verify the employee's eligibility to work in the United States.
23. Notices
The Employee acknowledges their rights regarding jury duty and military service leave.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
____________________________
[Employer Legal Name]
By: ____________________________
[Authorized Representative Name]
[Title]
Date: ____________________________
____________________________
[Employee Full Name]
Date: ____________________________
Witness: ____________________________
[Witness Name] (Optional)