Employment Agreement
A written contract between an employer and employee specifying the terms and conditions of employment, duration, compensation, duties, benefits, restrictive covenants, and termination rights. Principal mechanism for modifying the at-will default and incorporating noncompete and confidentiality obligations.
An employment agreement is a written contract between an employer and an employee specifying the terms and conditions of employment, duration, compensation, duties, benefits, restrictive covenants, and termination rights. In Texas, written employment agreements are the principal mechanism for modifying the at-will default rule and for incorporating noncompete and confidentiality obligations.
Typical provisions
(1) Position, duties, and reporting structure; (2) compensation (base salary, bonus structure, commissions, equity); (3) benefits eligibility; (4) duration (fixed-term or at-will with specified notice); (5) termination provisions (for cause, without cause, change of control); (6) severance terms (if any); (7) restrictive covenants (noncompete, nonsolicitation, confidentiality, IP assignment); (8) dispute resolution (arbitration, choice of law and venue).
At-will modification
A Texas employment agreement that does not specify a duration or termination standard preserves the at-will default. To modify at-will status, the agreement must contain specific language, typically a fixed term, a "for cause" termination requirement, or specified notice/severance obligations on termination without cause.
Restrictive covenant integration
The employment agreement is typically the "otherwise enforceable agreement" supporting noncompete and nonsolicitation provisions under § 15.50. The employer's contractual promise to provide confidential information or specialized training (typically as a condition of employment) provides the consideration supporting the noncompete.
Most rank-and-file Texas employees do not have written employment agreements, they are at-will by default. Written employment agreements are typical for executives, sales personnel with significant customer relationships, and roles involving access to trade secrets or specialized training. The agreement's restrictive-covenant provisions are often more consequential to the employer's competitive position than the compensation provisions.