Why Employment Agreements Matter
Every workplace relationship demands trust—but trust alone isn’t enough. A precise, written employment contract lays out the terms of employment, protects your business, and helps avoid conflict.
Whether you hire full-time, part-time, or freelance workers, clearly defining expectations is essential. That includes job responsibilities, salary, benefits, and what happens if you terminate the employment relationship.
When well-drafted, these agreements support better communication between employers and employees and reduce the chance of future disputes. They also help businesses comply with employment laws and provide a foundation for resolving conflicts.
Employment Contract Lawyers in Bucks, Delaware, and Montgomery County
You can elect to draft your essential business employment contracts yourself. However, that can open the door to disputes and wrongful termination claims relating to issues such as remote firings. At the least, applying insights from an employment contract lawyer near you can minimize concerns.
With offices in Doylestown, Norristown, and Wayne, our employment contract lawyers represent employers throughout Bucks, Montgomery, and Delaware Counties. We work with businesses of all sizes and across industries to ensure employment agreements are:
- Legally enforceable
- Clearly written
- Tailored to each role and risk level
- Compliant with federal and state labor laws
We also help resolve disputes when employment terms are challenged or breached.
Employment Laws Employers Should Know
Even the best contract won’t hold up if it violates state or federal laws. Employers must ensure that every agreement complies with labor standards and employee rights.
Here are a few key laws that impact how employment agreements are written and enforced:
- Fair Labor Standards Act (FLSA): The FLSA covers wage, overtime, and employee classification.
- Title VII of the Civil Rights Act: The Civil Rights Act of 1964 prohibits employment discrimination.
- Family and Medical Leave Act (FMLA): The FMLA ensures eligible employees can take protected leave.
- Americans with Disabilities Act (ADA): Disability rights are civil rights. The ADA protects people with disabilities in many areas of public life, including employment.
- Pennsylvania Wage Payment and Collection Law: WPCL ensures employees receive payment on time and accurately. It requires employers to pay wages on designated paydays and notify employees of pay rates and benefits.
You expose your business to legal concerns unless you know these state and federal laws. An employment contract lawyer ensures your agreements reflect these rules and don't expose your business to avoidable claims.
Staying Current with Employment Law Changes
Employment laws evolve—sometimes rapidly. Federal agencies and state regulators continue to update rules affecting employment contract writing, enforcement, and challenges—employers who don't comply risk having unenforceable agreements or facing penalties for noncompliance.
Some recent developments include:
- The FTC has proposed a national ban on most non-compete agreements. This ban signals a significant shift in enforcing these clauses and remains under legal review.
- The NLRB has ruled that broad confidentiality and non-disparagement clauses in severance agreements may violate employees' rights.
- In Pennsylvania, enforcement of independent contractor classification has increased, particularly in industries like construction, healthcare, and gig work.
- Pennsylvania now prohibits non-compete agreements for certain healthcare workers, such as certified nurse practitioners, under Act 120 of 2022.
An employment contract lawyer can help ensure your contracts reflect current laws and proposed changes. Employers must ensure that every agreement complies with labor standards and employee rights.
7 Common Types of Employment Contracts
Employment relationships come in many forms, each calling for a different type of agreement. Below are the most common types of employment contracts used in Pennsylvania:
1. Full-Time Contracts
These are for employees working a full workweek, usually 35–40 hours. They typically include benefits such as health insurance, paid time off, retirement plans, and sometimes equity or stock options. Full-time roles often provide greater job security.
2. Part-Time Contracts
These agreements are for employees working fewer than 35 hours per week. While they offer flexibility, they may not include the same benefits as full-time roles.
3. Fixed-term or Temporary Contracts
These define a specific period of employment, either tied to a project or a calendar date. Fixed-term employment is ideal for short-term needs and seasonal or grant-funded positions.
4. Freelance or Independent Contractor Contracts
Often referred to as 1099 contracts, these are for self-employed individuals. They outline the scope of work, payment terms, and deadlines and can include non-compete or non-solicitation clauses. These workers do not qualify as employees and manage their taxes and benefits.
5. At-Will Employment Contracts
In Pennsylvania, most employment is considered at-will. That means either party can terminate the relationship at any time, with or without cause. However, at-will contracts still benefit from written terms clarifying pay, responsibilities, and procedures.
6. Casual Employment Contracts
These agreements do not guarantee a set number of hours and are suitable for irregular or on-demand work. They're helpful for employers with fluctuating staffing needs and workers looking for side income.
7. Open-Ended Contracts
These have no fixed end date and continue until either party terminates. They're common for core staff and long-term roles that don’t fall into a temporary category.
High-Risk Employment Contracts Deserving Legal Review
Every employment agreement should include careful drafting. But some carry higher legal risks. These agreements often involve senior roles, proprietary information, or flexible terms.
If mishandled, they can expose your business to disputes or compliance issues. An employment contract lawyer can help ensure these contracts are airtight.
- Executive Contracts: These should never be boilerplate because compensation (stock options, severance, signing bonuses) is complex.
- Independent Contractor Agreements: Misclassification is a common—and costly—mistake employers make. It can lead to tax penalties and legal disputes.
- Non-Compete Agreements – The enforceability of non-compete agreements is changing. For example, the FTC has proposed a nationwide ban. Pennsylvania courts apply strict scrutiny—especially for lower-wage roles or broad geographic restrictions. An employment contract lawyer can help ensure these clauses are reasonable and enforceable.
- NDAs: Non-disclosure agreements protect trade secrets and confidential business data that deserve legal protection.
- Fixed-term agreements: These are useful for project-based or temporary roles, as they clearly define employment start and end dates. They should also clearly outline renewal options, early termination rights, required notice periods, and end-of-contract obligations.
Key Terms and Conditions to Include in Employment Contracts
What you include in an employment agreement matters as much as the type. A well-drafted contract goes beyond job duties to present how the working relationship will operate—and how it could end. Without clear terms, even minor misunderstandings can lead to significant disputes.
A thorough employment contract should cover these critical details:
- Job title and duties
- Compensation and bonuses (including signing bonuses if offered)
- Benefits (healthcare, retirement plans, vacation days)
- Stock options or other equity agreements
- Hours of work and work location
- Terms of employment (fixed-term, at-will, or other arrangement)
- How to terminate the employment relationship
- Non-compete clauses and restrictions
- Protection of trade secrets and confidential information
- Dispute resolution methods (negotiation, mediation, arbitration)
Getting these details right protects both employers and employees from future legal headaches.
What Makes an Employment Contract Legally Binding?
Employment agreements aren't handshakes on paper—they must meet legal standards to be enforceable in court. In Pennsylvania, a legal contract must have key elements. These elements show a clear understanding between the employer and employee.
Before you finalize any agreement, make sure it includes:
- An offer and straightforward acceptance
- Something of value exchanged (e.g., salary for services)
- Intent to enter into a legal relationship
- Legal capacity of both parties
In addition, a valid employment agreement should comply with state and federal employment laws. Unfair, misleading, or vague terms can render a contract unenforceable. Consulting an employment contract lawyer ensures your contracts are valid in the eyes of the law.
Protect Your Workplace
Concisely drafted employment contracts are essential to protecting your business. Consider whether it's worth drafting them yourself or using a template you found online.
Our employment contract lawyers ensure that every contract you draft meets federal and state guidelines. They also ensure that employment contracts are rock-solid regarding terms and conditions for employment and dismissal.
Contact us today to speak with an experienced employment contract lawyer. We can help you build agreements that will stand up in the real world.
Call one of our local law offices in Doylestown, Feasterville-Trevose, Norristown, or Wayne, PA. It's worth your peace of mind!
