Employment Contract in New York

Prepare to Draft a New York Employment Contract

Before drafting an employment contract in New York, gather essential information and understand key legal considerations. This checklist ensures you start with the right groundwork.

• Confirm the worker's classification: employee vs. independent contractor, as misclassification has significant legal and tax consequences.
• Collect the employee's full legal name, contact details, and work authorization status to ensure accuracy in the agreement.
• Determine the job title, duties, reporting structure, and whether the role is exempt or non-exempt under New York labor laws.
• Decide on compensation structure (salary, hourly, or commission) and note that New York requires specific pay frequency and wage statements.
• Review any restrictive covenants (non-compete, non-solicit) carefully; New York recently banned non-competes for most employees unless they meet high-value criteria.
• Draft the at-will relationship clause (unless contract specifies otherwise) and any notice or severance terms; ensure compliance with New York's strict wage payment law.
• Have the employee sign after any offer letter is accepted; notarization is not required for employment contracts in New York, but witnesses are not needed either.
• Keep a signed copy for your records; New York requires you to provide a written copy of the contract to the employee upon request.