Key Employee Agreement Generator for United States

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Key Requirements PROMPT example:

Key Employee Agreement

"I need a Key Employee Agreement for our new Chief Technology Officer starting March 1, 2025, including stock options, relocation assistance from Seattle to Boston, and strong IP protection clauses due to our work in AI development."

Document background
The Key Employee Agreement serves as a crucial legal document for organizations hiring individuals in senior or strategic positions. This contract type is particularly important when the employee will have access to sensitive information, significant decision-making authority, or specialized expertise. The agreement typically includes detailed provisions about compensation, equity participation, confidentiality, intellectual property rights, and post-employment restrictions, all while ensuring compliance with U.S. federal and state employment laws. It's designed to protect the employer's interests while providing clarity and security for the key employee.
Suggested Sections

1. Parties: Identifies the employer and key employee with full legal names and addresses

2. Background: States the context and purpose of the agreement, including the employee's role and start date

3. Definitions: Defines key terms used throughout the agreement

4. Position and Duties: Details the employee's title, responsibilities, and reporting structure

5. Compensation and Benefits: Outlines salary, bonuses, and benefit entitlements

6. Term and Termination: Specifies duration of employment and termination conditions

7. Confidentiality: Defines confidential information and protection obligations

8. Intellectual Property: Addresses ownership of work product and inventions

Optional Sections

1. Non-Compete: Restricts post-employment competition in jurisdictions where permitted by law

2. Non-Solicitation: Prevents solicitation of employees/customers after employment termination

3. Equity Compensation: Details stock options or other equity arrangements if part of compensation package

4. Relocation: Terms for relocation assistance and related obligations

5. Change of Control: Provisions triggered by company ownership changes or acquisition events

Suggested Schedules

1. Schedule A - Compensation Details: Detailed breakdown of salary, bonuses, and commission structure

2. Schedule B - Job Description: Detailed outline of role responsibilities and expectations

3. Schedule C - Benefits Package: Comprehensive list of benefits and eligibility criteria

4. Schedule D - Equity Grant Terms: Details of any stock options or equity compensation

5. Schedule E - Company Policies: Key company policies that form part of the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Fair Labor Standards Act (FLSA): Federal law governing minimum wage requirements, overtime pay regulations, and employee classification standards

Employment Retirement Income Security Act (ERISA): Federal law regulating employee benefits, retirement plans, and healthcare coverage requirements

Immigration Reform and Control Act: Federal law requiring verification of employment authorization and work eligibility

Internal Revenue Code: Federal tax regulations affecting employment relationships, including employee classification and tax implications

National Labor Relations Act (NLRA): Federal law protecting employee rights regarding unionization and concerted activities

Equal Employment Opportunity Laws: Federal laws including Title VII, ADA, and ADEA, protecting against workplace discrimination

State Labor Laws: State-specific regulations governing wages, hours, paid time off, and minimum wage requirements

Non-Compete Laws: State-specific regulations governing restrictive covenants and non-competition agreements

Trade Secret Protection: State-adopted versions of the Uniform Trade Secrets Act and confidentiality provisions

State Employment Discrimination Laws: State-specific protections against workplace discrimination, often extending beyond federal requirements

State Leave Laws: State-specific regulations governing family, medical, sick, and vacation leave policies

Intellectual Property Rights: Provisions governing ownership and protection of intellectual property created during employment

Dispute Resolution Procedures: Framework for handling employment-related disputes, including arbitration and mediation provisions

Termination Provisions: Terms and conditions governing employment termination, including notice periods and severance

Compensation Structure: Framework for salary, bonuses, commissions, and other forms of compensation

Performance Metrics: Standards and criteria for evaluating employee performance and achievement

Restrictive Covenants: Provisions limiting post-employment activities, including non-solicitation and confidentiality obligations

Stock Options/Equity Compensation: Terms governing employee participation in company ownership through stock options or other equity arrangements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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