Checklist For Negotiating An Employment Agreement

By: Robert Bramlette, Income Member

It is in the best interest for the employer and executive to have a clear understanding of what they’re seeking before starting employment. The employer wants the executive to be productive from the first day, so make sure benefit issues are in place and all job aspects are clearly defined. Addressing the following issues in a written employment agreement is beneficial.

Job Specifics
• Expectations: title, duties, office hierarchy, performance goals
• Location: office location, office transfer, travel
• Salary: base compensation, bonuses, stock options, reviews, raises, payout if company is sold
• Benefits: health insurance, dental insurance, disability, 401k match, vacation
• Other benefits: computer, phone, car, entertainment allowance, expense account
• Relocation benefits: selling home, visits to new city etc.

Terms Of Employment
• Agreement duration
• Early termination provision

Restrictive Covenants
• Employee participation in other activities and board memberships
• Non-compete agreement duration and geographic radius
• Non-solicitation of customers and employees
• Confidentiality: trade secrets, customer information, financials, future plans

Intellectual Property
• Development
• Ownership rights

Termination
• For Cause by the employer
• For Good Reason by the employee
• Without Cause by employer or employee
• Severance payment and benefits duration

Prior Agreements
• Whether signing this agreement violates a previous agreement
• Use of former employer’s confidential information and customer list

Additional Issues
• Industry nature
• Position seniority
• Office location
• Whether employer is a public or private employer
• Company maturity (eg: startup or mature company)

Chicago, Illinois 312-377-1501 | Crown Point, Indiana 219-488-2590

Chicago, Illinois

312-377-1501


Crown Point, Indiana

219-488-2590