Employment Contract - At-Will

AT-WILL EMPLOYMENT AGREEMENT

California hiring agreement

This At-Will Employment Agreement (the “Agreement”) is entered into as of [__/__/____] by and between:

• Employer: [EMPLOYER LEGAL NAME], a [ENTITY TYPE], with an address at [EMPLOYER ADDRESS] (“Employer”); and
• Employee: [EMPLOYEE LEGAL NAME], residing at [EMPLOYEE ADDRESS] (“Employee”).

Employer and Employee are each a “Party” and together the “Parties.”

1. Position and Employment Status

1.1 Position. Employer employs Employee as [JOB TITLE], reporting to [SUPERVISOR/TITLE], beginning [__/__/____].

1.2 Work Location and Schedule. The primary work location is [ADDRESS / REMOTE-WORK LOCATION]. The anticipated schedule is [DAYS/HOURS]. The established workday begins at [TIME] and the established workweek begins on [DAY/TIME].

1.3 Duties. Employee will perform the duties in Exhibit A, comply with lawful instructions and written policies, and promptly disclose actual conflicts of interest.

1.4 At-Will Relationship. Employment has no specified term and is at will under California Labor Code § 2922. Subject to applicable law, any collective bargaining agreement, and the payment obligations in this Agreement, either Party may end employment at any time, with or without cause or advance notice.

1.5 No Fixed Term. A start date, salary, review cycle, bonus opportunity, or anticipated schedule does not create employment for a fixed term. Any fixed-term commitment must be stated expressly in a separate writing signed by Employee and [AUTHORIZED EMPLOYER OFFICER].

1.6 Lawful Reasons Only. Nothing in this Agreement authorizes discrimination, retaliation, interference with protected leave or wage rights, or another termination prohibited by law.

2. Compensation, Wage Notice, and Payroll

2.1 Compensation Terms

2.2 Required Hiring Notice. If Employee is covered by Labor Code § 2810.5, Employer will provide the current DLSE Notice to Employee at hiring in the language Employer normally uses to communicate employment information. The completed notice must include all required employer, wage, workers’ compensation, paid-sick-leave, and recent emergency-or-disaster information. Employer will provide a compliant written update within seven calendar days after a required item changes unless a statutory alternative applies.

2.3 Minimum Wage. Beginning January 1, 2026, the statewide minimum wage is $16.90 per hour for all employers. Employer will apply any higher local, industry-specific, contractual, or other applicable rate.

2.4 Paydays. Employer will designate regular paydays in advance and pay wages at least twice during each calendar month unless a statutory exception applies. Weekly, biweekly, or semimonthly wages generally must be paid no more than seven calendar days after the payroll period closes. Any monthly schedule must be reviewed for compliance with Labor Code § 204.

2.5 Overtime. Unless a valid exemption, exclusion, collective bargaining provision, or approved alternative workweek applies, Employer will pay:

• one and one-half times the regular rate for work over eight hours in a workday, over forty hours in a workweek, and for the first eight hours on the seventh consecutive day worked in a workweek; and
• twice the regular rate for work over twelve hours in a workday and over eight hours on the seventh consecutive day worked in a workweek.

The same hour will not receive more than one overtime premium solely because it qualifies under multiple daily or weekly tests.

2.6 Salary Does Not Decide Exemption. Salary compensation does not by itself establish an exemption. Employer must document and periodically review the applicable wage order, salary-basis, salary-level, duties, coverage, and industry requirements.

2.7 Hours and Records. Employee will accurately record all hours worked and will not perform off-the-clock work. Employer remains responsible for maintaining required records and paying for all work it suffers or permits, including compensable overtime whether or not approved in advance.

2.8 Deductions. Employer may make deductions required by law or supported by a valid written authorization. No deduction may reduce wages below applicable minimum-wage or overtime requirements or recover an ordinary business cost in violation of law.

2.9 Optional Compensation. Employee may be eligible for the following only under the identified controlling written plan:

• ☐ Discretionary bonus: [PLAN/TERMS]
• ☐ Commission: [ATTACH SIGNED COMMISSION AGREEMENT]
• ☐ Equity award: [ATTACH PLAN/GRANT]
• ☐ Other: [DESCRIPTION]

A commission arrangement for services rendered in California must be in a signed writing that states how commissions are computed and paid. Employer will give Employee a signed copy and obtain a signed receipt. Each plan should state when compensation is earned, vested, calculated, and payable after separation.

3. Benefits, Leave, Vacation, and Expenses

3.1 Benefit Plans. Employee may participate in plans for which Employee is eligible, subject to the controlling plan documents. Employer may amend or discontinue a plan only as permitted by those documents and applicable law.

3.2 California Paid Sick Leave. Employer will provide paid sick leave meeting Labor Code § 246 and any more-protective local requirement. Unless an exemption applies, a compliant policy generally must provide and allow use of at least forty hours or five days, whichever is greater, per year. Employer will maintain a policy addressing eligibility, accrual or frontloading, use after the statutory waiting period, carryover, permissible caps, notice, reinstatement, pay-stub reporting, and anti-retaliation.

3.3 Vacation and Other PTO. Vacation, holiday, and severance benefits, if offered, are governed by [POLICY/PLAN NAME AND DATE]. A policy providing paid vacation may cap future accrual on reasonable terms but may not forfeit vested vacation. At separation, Employer will pay vested unused vacation at Employee’s final rate as required by Labor Code § 227.3. Statutory paid sick leave is handled separately and is not payable at separation solely because it is unused, unless a more-generous policy requires payment.

3.4 Necessary Business Expenses. Employer will reimburse all necessary expenditures or losses Employee incurs in direct consequence of performing assigned duties, consistent with Labor Code § 2802 and [EXPENSE POLICY NAME]. The policy must address authorization, documentation, timing, remote-work costs, mileage, travel, required tools, and other recurring expenses without shifting Employer’s legal duty to Employee.

3.5 Protected Rights. Nothing in this Agreement limits legally protected leave, accommodation, benefit, wage, safety, workers’ compensation, unemployment, organizing, reporting, or anti-retaliation rights.

4. Confidential Information, Work Product, and Lawful Work

4.1 Confidential Information. Employee will use Employer’s nonpublic business information only for authorized work and protect it from unauthorized disclosure. This duty excludes information lawfully known without restriction, independently developed without Employer information, publicly available without breach, or lawfully reported or disclosed to a government agency, attorney, or court.

4.2 Protected Activity. Nothing prohibits Employee from discussing wages or working conditions, engaging in protected concerted activity, reporting suspected violations, participating in an investigation, making a legally protected disclosure, or receiving a government award where permitted.

4.3 Work Product and Inventions. To the extent permitted by law, Employee assigns to Employer work product created within the scope of employment and inventions that may lawfully be assigned. This assignment does not apply to an invention excluded by Labor Code § 2870. Employee identifies all preexisting works and inventions relevant to the assigned duties in Exhibit B.

4.4 Required Invention Notice. Because this Agreement includes an invention-assignment provision, Employer provides the written notification in Exhibit C at the time this Agreement is made, as required by Labor Code § 2872.

4.5 No Post-Employment Restraint. This Agreement does not impose a post-employment noncompetition or nonsolicitation covenant and does not restrain Employee from engaging in a lawful profession, trade, or business. Employer will not include or attempt to enforce a provision void under California Business and Professions Code §§ 16600, 16600.1, or 16600.5.

4.6 Return of Property. At separation, Employee will return Employer property and information, except records Employee is legally entitled to retain. Property-return issues will not delay final wages.

5. Separation and Final Pay

5.1 Notice of Separation. A Party ending employment should give written notice stating the effective date, although advance notice is not required for an at-will separation unless another binding agreement or law requires it.

5.2 Employer Discharge. If Employer discharges Employee, earned and unpaid wages are due immediately, subject to any specific statutory exception.

5.3 Employee Resignation. If Employee resigns after giving at least seventy-two hours’ notice, earned and unpaid wages are due at the time of quitting. Without that advance notice, they are due no later than seventy-two hours after quitting; Employee may request payment by mail and designate a mailing address.

5.4 Final-Pay Components. Final pay will include earned wages and vested unused vacation and will address earned commissions, bonuses, and other compensation under the controlling written plan and applicable law. Necessary expense reimbursement will be paid on the legally required schedule. Unused statutory paid sick leave will be treated under Section 3.3.

5.5 Waiting-Time Compliance. Employer will calculate and timely tender final wages. A willful failure to pay wages when due under Labor Code §§ 201 or 202 may result in continued-wage penalties for up to thirty days under Labor Code § 203.

5.6 No Conditional Wage Release. Employer will not condition payment of undisputed earned wages on signing a release, returning property, or resolving a separate claim.

5.7 Continuing Terms. Section 4 and this Section 5 survive only to the extent their subject matter requires and the provision remains lawful.

6. General Terms

6.1 No Employee Indemnity or Employer Liability Cap. This Agreement does not require Employee to indemnify Employer for ordinary work conduct, cap Employer’s wage or employment-law liability, waive statutory remedies, shift Employer’s legal compliance duties, or impose prevailing-party fees.

6.2 Policies and Plans. Written policies and plan documents supplement this Agreement but do not alter at-will status unless a signed writing expressly says otherwise. A controlling benefit-plan document governs plan administration to the extent permitted by law.

6.3 Governing Law and Forum. California law governs. Subject to any separately executed and enforceable arbitration agreement, an action relating to this Agreement may be brought in a court of competent jurisdiction in [COUNTY], California.

6.4 Arbitration and Waivers. No arbitration, jury waiver, class waiver, representative-action waiver, fee-shifting, or prevailing-party clause is created by this Agreement. Any proposed dispute-resolution agreement must be separate, counsel-reviewed, and signed by both Parties.

6.5 Entire Agreement. This Agreement and its identified exhibits are the complete agreement on the subjects they address and supersede prior statements on those subjects without waiving nonwaivable rights.

6.6 Amendment. An amendment must be in writing and signed by both Parties, except a lawful prospective compensation, policy, or plan change may be made through the notice or procedure identified above.

6.7 Severability. If a provision is unenforceable, it will be severed or narrowed only to the extent a court permits, without expanding any restraint on Employee.

6.8 Electronic Signatures. Counterparts and electronic signatures may be used to the extent permitted by law.

7. Acknowledgments and Signatures

By signing, each Party acknowledges that the compensation and payroll terms in Section 2 are complete and that Employee received:

• ☐ Job description (Exhibit A)
• ☐ Preexisting works and inventions list (Exhibit B)
• ☐ Labor Code § 2872 invention notice (Exhibit C)
• ☐ Current DLSE Notice to Employee, if applicable
• ☐ Paid sick leave and vacation/PTO policies
• ☐ Commission, bonus, or equity plan identified above
• ☐ Employee handbook
• ☐ Other required notices: [LIST]

Exhibit A — Job Description

[INSERT POSITION DUTIES, ESSENTIAL FUNCTIONS, REPORTING RELATIONSHIP, WORK LOCATION, AND SCHEDULE.]

Exhibit B — Preexisting Works and Inventions

☐ None.

☐ The following items are excluded from the assignment in Section 4.3:

[LIST EACH PREEXISTING WORK OR INVENTION.]

Exhibit C — California Invention-Assignment Notice

The invention-assignment provision in this Agreement does not apply to an invention that Employee developed entirely on Employee’s own time without using Employer’s equipment, supplies, facilities, or trade secret information, except for an invention that either:

1. relates, at the time of conception or reduction to practice, to Employer’s business or actual or demonstrably anticipated research or development; or
2. results from work performed by Employee for Employer.

To the extent an assignment provision purports to require assignment of an invention otherwise excluded by California Labor Code § 2870, that provision is against California public policy and is unenforceable.

Employee acknowledges receiving this written notice when the Agreement was made.

Employee initials: [____] Date: [__/__/____]

Sources and References

• California Legislative Information, Labor Code § 2922: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=2922.
• California Legislative Information, Labor Code § 2810.5: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=2810.5.
• California Labor Commissioner, current Notice to Employee form: https://www.dir.ca.gov/dlse/LC_2810.5_Notice.pdf
• California Legislative Information, Labor Code § 204: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=204.
• California Legislative Information, Labor Code § 510: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=510.
• California Legislative Information, Labor Code § 1182.12: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1182.12.
• California Department of Industrial Relations, 2026 minimum wage: https://www.dir.ca.gov/dlse/minimum_wage.htm
• California Legislative Information, Labor Code § 201: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=201.
• California Legislative Information, Labor Code § 202: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=202.
• California Legislative Information, Labor Code § 203: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=203.
• California Legislative Information, Labor Code § 227.3: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=227.3.
• California Legislative Information, Labor Code § 246: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=246.
• California Labor Commissioner, Paid Sick Leave FAQ (updated Dec. 31, 2025): https://www.dir.ca.gov/dlse/paid_sick_leave.htm
• California Legislative Information, Labor Code § 2751: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=2751.
• California Legislative Information, Labor Code § 2802: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=2802.
• California Legislative Information, Labor Code § 2870: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=2870.
• California Legislative Information, Labor Code § 2872: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=2872.
• California Legislative Information, Business and Professions Code § 16600: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=16600.
• California Legislative Information, Business and Professions Code § 16600.1: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=16600.1.
• California Legislative Information, Business and Professions Code § 16600.5: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=16600.5.
• U.S. Department of Labor, FLSA overtime requirements: https://www.dol.gov/agencies/whd/fact-sheets/23-flsa-overtime-pay
• National Labor Relations Board, Employee Rights: https://www.nlrb.gov/about-nlrb/rights-we-protect/your-rights/employee-rights