Bringing on a new team member is an exciting prospect. But it comes with risks. To avoid drawn out conflicts, it is crucial that both parties fully comprehend the new employee’s roles, remuneration, and benefits.

Apex Corporate Law is here to help clients in New York, Delaware, and beyond to crystallize these terms through ironclad offer letters and employment agreements, thereby reducing the potential for miscommunication and subsequent disputes.

Building your team

with employment agreements

Offer Letter 

After a job candidate is given a verbal offer, the next steps is to provide them with an offer letter.

Offer letters detail the position's particulars, and are mandated by Law in New York. A typical offer letter will cover things like:

  • Job title and description

  • Compensation and benefits package

  • Bonus structure

  • Vacation / holidays

  • Leave policy

  • Start date

  • Restrictive covenants (such as non-competes, non-disclosures)

Employment Agreements

Unlike offer letters, employment agreements are not compulsory under New York Law. They are typically reserved for executives or pivotal employees, addressing more intricate matters such as stock options, and non-competition clauses.

Compared to offer letters, employment agreements include additional details regarding job duties and performance obligations, as often times, compensation is linked to performance incentives.

Since these agreements tend to be given to key employees, provisions for compensation may discuss discretionary bonuses, stock options, deferred compensation, and fringe benefits. The agreement also may be for a specified time, only permit termination for cause, and provide for an exit or severance package.

More robust restrictive covenants will be included, to prevent the employee from potentially harming the business, should the arrangement not work out. As will provisions for dispute resolution.

Employee’s rights

As an employer, it’s essential to understand the rights of your employees, to avoid costly mistakes.

In New York, employment is generally “at-will.” This means that either the employer or the employee can end the relationship, for any (or no) reason, unless there is an agreement stating otherwise.

But this does not mean that you can fire employees at will. Federal and State workplace discrimination laws exist for a reason, and cannot be over-written by offer letters and employment agreements.

Given the highly variable nature of these documents, it is paramount to have them reviewed by an attorney. Before an employee starts on their duties, you have leverage to request amendments, and set the rules of the game; once signed, negotiating changes can prove significantly more challenging.

growing your team?

Don't leave your employment terms to chance. Whether you're drafting an offer letter or negotiating an employment agreement, our experienced attorneys are here to safeguard your interests and set clear expectations from day one. Contact Apex Corporate Law today to ensure your agreements are comprehensive and legally sound.