Texas employment contract template
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How Texas employment contract Differ from Other States
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Texas is an at-will employment state, meaning either party can terminate the employment at any time without cause, unless otherwise stated in the contract.
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Non-compete agreements in Texas are enforceable but must be reasonable in scope, duration, and geographic area, unlike in some states where they are largely unenforceable.
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Texas does not require employers to provide paid vacation, sick leave, or severance pay; these benefits are only enforceable if included in the employment contract.
Frequently Asked Questions (FAQ)
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Q: Is a written employment contract required in Texas?
A: No, most employment relationships in Texas are at-will and do not require a written contract, but having one can clarify terms and obligations.
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Q: Are non-compete clauses enforceable in Texas employment contracts?
A: Yes, but only if they are reasonable in time, geographic area, and scope. Overly broad restrictions may not be enforced by Texas courts.
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Q: Can an employer terminate an employee without cause in Texas?
A: Yes, Texas follows the at-will employment doctrine, allowing employers and employees to end the relationship at any time, with or without reason.
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Texas Employment Contract
This Employment Contract is made and entered into as of this [Date], by and between [Employer Name], a [State of Formation] [Entity Type, e.g., Corporation, LLC] with its principal place of business at [Employer Address], represented by [Representative Name], hereinafter referred to as "Employer," and [Employee Name], residing at [Employee Address], with Social Security Number [Employee SSN (Optional)] or other government identification [Employee ID Number (Optional)], and contact details as follows: [Employee Phone Number] and [Employee Email Address], hereinafter referred to as "Employee."
1. Employment
- Option A: Job Title and Description
- Employee is hereby employed by Employer in the position of [Job Title]. Employee’s duties and responsibilities include, but are not limited to: [Detailed Description of Job Duties].
- Option B: Work Location
- The Employee's primary work location will be [Work Location]. The Employee may be required to travel to other locations as reasonably necessary to perform their duties.
- Option C: Employment Type
- Select One:
- Full-Time
- Part-Time
- Temporary
- Seasonal
- Internship
- Select One:
- Option D: FLSA Classification
- Select One:
- Exempt
- Non-Exempt
- Select One:
2. Term of Employment
- Option A: At-Will Employment
- Employee’s employment with Employer is at-will. This means that either Employer or Employee may terminate the employment relationship at any time, with or without cause or notice, for any legally permissible reason. This at-will employment relationship cannot be modified except in a writing signed by an authorized officer of Employer.
- Option B: Fixed-Term Employment
- The term of employment shall commence on [Start Date] and shall continue until [End Date].
- Renewal: This Contract [Shall/Shall Not] automatically renew for successive [Number]-year terms unless either party provides written notice of non-renewal at least [Number] days prior to the expiration of the current term.
- Performance Evaluation: Employee's performance will be evaluated [Frequency] based on the following criteria: [Performance Evaluation Criteria].
- The term of employment shall commence on [Start Date] and shall continue until [End Date].
3. Compensation
- Option A: Base Compensation
- The Employee will be compensated at a rate of [Rate] per [Hour/Year]. This is a [Hourly/Salary] rate.
- Option B: Payment Period
- Employee will be paid [Weekly/Bi-Weekly/Monthly].
- Option C: Payment Method
- Employee will be paid by [Check/Direct Deposit].
- Option D: Overtime Pay (For Non-Exempt Employees Only)
- For all hours worked in excess of 40 in a workweek, Employee shall be paid overtime compensation at a rate of one and one-half (1.5) times Employee's regular rate of pay, in accordance with the Fair Labor Standards Act.
- Option E: Deductions
- All standard deductions required by law will be withheld from Employee’s compensation, including but not limited to federal and state income taxes, Social Security, and Medicare.
- Option F: Expense Reimbursement
- Employee will be reimbursed for reasonable and necessary business expenses incurred in connection with the performance of their duties, subject to Employer's expense reimbursement policy.
- Option G: Bonus/Commission/Incentive Pay
- Employee is [Eligible/Ineligible] to receive a bonus/commission/incentive pay as outlined in the attached [Bonus Plan/Commission Plan/Incentive Pay Plan].
4. Employee Benefits
- Option A: Health Insurance
- Employee [Is/Is Not] eligible to participate in Employer’s health insurance plan, subject to the terms and conditions of the plan.
- Option B: Dental/Vision Insurance
- Employee [Is/Is Not] eligible to participate in Employer’s dental and/or vision insurance plans, subject to the terms and conditions of the plans.
- Option C: Disability/Life Insurance
- Employee [Is/Is Not] eligible to participate in Employer’s disability and/or life insurance plans, subject to the terms and conditions of the plans.
- Option D: Paid Time Off (PTO) and Vacation
- Employee [Is/Is Not] eligible for paid time off (PTO) and vacation, accruing at a rate of [Accrual Rate], subject to Employer’s PTO policy.
- Option E: Sick Leave
- Employee [Is/Is Not] eligible for sick leave, accruing at a rate of [Accrual Rate], subject to Employer’s sick leave policy.
- Option F: Holidays
- Employee [Is/Is Not] entitled to paid holidays as designated by Employer.
- Option G: Leave of Absence
- Employee [Is/Is Not] eligible for leaves of absence in accordance with Employer’s policies and applicable law, including the Family and Medical Leave Act (FMLA).
- Option H: Retirement/401(k) Plan
- Employee [Is/Is Not] eligible to participate in Employer's retirement or 401(k) plan, subject to the terms and conditions of the plan.
- Option I: Stock Options/Equity Grants
- Employee [Is/Is Not] eligible to receive stock options or equity grants, subject to the terms and conditions of the applicable plan.
5. Work Hours
- Option A: Regular Hours
- Employee's regular work hours will be [Number] hours per week, generally between the hours of [Start Time] and [End Time], [Days of the Week].
- Option B: Schedule
- Employee's specific work schedule will be determined by Employer and may be subject to change based on business needs.
- Option C: Breaks and Meal Periods
- Employee will be entitled to [Number] paid/unpaid break(s) of [Duration] each day, and an unpaid meal period of [Duration].
- Option D: Telework/Remote Work
- Employee [Is/Is Not] authorized to perform work remotely, subject to the terms and conditions of Employer’s telework/remote work policy.
6. Workplace Conduct
- Option A: Code of Conduct
- Employee agrees to adhere to Employer’s code of conduct and all other policies and procedures as may be established from time to time.
- Option B: Performance Requirements
- Employee is expected to meet or exceed the performance standards established by Employer.
- Option C: Appearance and Dress Code
- Employee is expected to maintain a professional appearance and adhere to Employer’s dress code.
- Option D: Company Property Use
- Employee agrees to use company property, including but not limited to computers, equipment, and vehicles, only for authorized business purposes.
- Option E: Employee Handbook
- Employee acknowledges receipt of Employer's Employee Handbook, which is incorporated herein by reference.
7. Intellectual Property
- Option A: Invention Assignment
- Employee agrees that all inventions, discoveries, ideas, and works of authorship conceived or developed by Employee during the term of employment that relate to Employer's business shall be the sole and exclusive property of Employer.
- Option B: Works for Hire
- Employee agrees that all works of authorship created by Employee during the term of employment shall be considered "works made for hire" under the U.S. Copyright Act, and Employer shall own all copyrights in such works.
- Option C: Confidentiality/Non-Disclosure
- Employee agrees to maintain the confidentiality of Employer's trade secrets, business information, and customer lists, both during and after the term of employment.
8. Non-Competition, Non-Solicitation, and Non-Disparagement (Optional - Review Carefully for Enforceability Under Texas Law)
- Option A: Non-Competition
- During the term of employment and for a period of [Number] years after termination, Employee shall not, directly or indirectly, engage in any business that competes with Employer's business within a [Geographic Scope] radius of Employer's principal place of business. This provision is ancillary to an otherwise enforceable agreement and is reasonable in time, geographic scope, and scope of activity.
- Option B: Non-Solicitation
- During the term of employment and for a period of [Number] years after termination, Employee shall not solicit, divert, or attempt to solicit or divert any of Employer's customers, clients, or employees. This provision is ancillary to an otherwise enforceable agreement and is reasonable in time, geographic scope, and scope of activity.
- Option C: Non-Disparagement
- Employee agrees not to disparage Employer, its products, services, or employees, either during or after the term of employment.
9. Separation and Termination
- Option A: Voluntary Resignation
- Employee may resign from employment by providing Employer with [Number] days written notice.
- Option B: Termination for Cause
- Employer may terminate Employee's employment for cause, which shall include, but not be limited to: [Definition of Cause, e.g., gross misconduct, insubordination, violation of company policy].
- Option C: Termination Without Cause
- Employer may terminate Employee's employment without cause at any time, subject to the at-will provisions of this agreement.
- Option D: Final Payment
- Upon termination of employment, Employer shall pay Employee all wages owed, including accrued but unused PTO (if applicable), in accordance with Texas law (no later than six calendar days after the date of discharge).
- Option E: Return of Company Property
- Employee agrees to return all company property, including but not limited to computers, equipment, documents, and data, upon termination of employment.
- Option F: Continuation of Benefits
- Employee may be eligible to continue health insurance coverage under COBRA, subject to the terms and conditions of COBRA.
10. Anti-Discrimination and Equal Employment Opportunity
Employer is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex, national origin, age, disability, genetic information, or any other characteristic protected by federal, state, or local law. This policy applies to all terms and conditions of employment, including but not limited to hiring, firing, promotion, compensation, and training.
11. Workplace Harassment and Anti-Retaliation
Employer prohibits workplace harassment and retaliation of any kind. Employee should report any incidents of harassment or retaliation to [Designated Contact Person/Department]. Employer will investigate all reports of harassment and retaliation promptly and thoroughly.
12. Health and Safety
Employer is committed to providing a safe and healthy work environment and complies with all applicable OSHA requirements and Texas health and safety laws. Employee is responsible for following all safety procedures and reporting any unsafe conditions to Employer.
- Option A: Specific Safety Standards
- For employees working with [Specific Hazardous Materials/Equipment], the following safety standards apply: [Detailed Safety Procedures].
13. Workers' Compensation
- Option A: Employer Provides Workers' Compensation Coverage
- Employer maintains workers' compensation insurance coverage for its employees.
- Option B: Employer Does Not Provide Workers' Compensation Coverage
- Employer does not maintain workers' compensation insurance coverage. By signing this agreement, Employee acknowledges that they have been informed that the Employer does not subscribe to the workers' compensation system under Texas law and agrees to assume the risks associated with this decision.
14. Dispute Resolution
- Option A: Mediation
- Any dispute arising out of or relating to this Employment Contract shall be resolved through mediation in [City, State], before resorting to litigation.
- Option B: Arbitration
- Any dispute arising out of or relating to this Employment Contract shall be resolved by binding arbitration in [City, State], in accordance with the rules of the American Arbitration Association.
- Waiver of Jury Trial: Employee and Employer knowingly and voluntarily waive their right to a jury trial in any legal proceeding arising out of or relating to this Employment Contract.
- Waiver of Class Action: Employee and Employer agree that any claim or dispute arising out of or relating to this Employment Contract must be brought in their individual capacity and not as a plaintiff or class member in any purported class or representative proceeding.
Governing Law: This Employment Contract shall be governed by and construed in accordance with the laws of the State of Texas.
Venue: The exclusive venue for any legal proceeding arising out of or relating to this Employment Contract shall be in [County, Texas].
15. Entire Agreement
This Employment Contract 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.
16. Amendment
This Employment Contract may be amended only by a writing signed by both Employer and Employee.
17. Waiver
No waiver of any provision of this Employment Contract shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.
18. Additional Optional Clauses (Select and Modify as Needed)
- Option A: Background Check
- Employee's employment is contingent upon a satisfactory background check.
- Option B: Drug Testing
- Employee may be subject to drug testing in accordance with Employer's drug testing policy.
- Option C: Reference Check Authorization
- Employee authorizes Employer to contact Employee's former employers for reference checks.
- Option D: Relocation Assistance
- Employee [Will/Will Not] receive relocation assistance in accordance with Employer’s relocation policy.
- Option E: Probationary Period
- Employee will be subject to a probationary period of [Number] days/months, during which Employer may evaluate Employee's performance.
- Option F: Training Requirements
- Employee is required to complete the following training programs: [List of Training Programs].
- Option G: Acknowledgment of Receipt of Employee Handbook
- Employee acknowledges receipt of Employer's Employee Handbook.
- Option H: Environmental, Technology, and Data Security Policies
- Employee agrees to comply with Employer's environmental, technology, and data security policies.
- Option I: Firearms Policy
- Employee is [Permitted/Prohibited] from possessing a firearm on Employer property in compliance with Texas law.
IN WITNESS WHEREOF, the parties have executed this Employment Contract as of the date first written above.
EMPLOYER:
____________________________
[Employer Representative Printed Name]
[Employer Representative Title]
Date: ______________________
EMPLOYEE:
____________________________
[Employee Printed Name]
Date: ______________________
Witness (Optional):
____________________________
[Witness Printed Name]
Date: ______________________
Notary (Optional):
State of Texas, County of _______________
On this ______ day of _______________, 20_____, before me, the undersigned, a Notary Public in and for said State, personally appeared ____________________________, known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
____________________________
Notary Public
My commission expires: ______________________
- Any dispute arising out of or relating to this Employment Contract shall be resolved by binding arbitration in [City, State], in accordance with the rules of the American Arbitration Association.