Employment Contract requirements in Tennessee
- Offer and acceptance: Both parties must agree to the terms.
- Consideration: Something of value must be exchanged (e.g., salary, benefits, services).
- Legal capacity: Both parties must be of sound mind and legal age.
- Lawful purpose: The contract cannot involve illegal activities.
- Written or oral: While oral contracts are generally valid in Tennessee, written agreements are recommended for clarity.
- Witness/notary: Not required for general employment contracts, but may be needed for certain types (e.g., non-compete agreements) or if the contract involves real estate transactions.
How to create a Employment Contract in Tennessee
- Determine the type of contract: employment agreement, independent contractor agreement, or offer letter.
- Include essential terms: job duties, compensation, benefits, work schedule, duration, and termination conditions.
- Add confidentiality and non-disclosure clauses to protect sensitive information.
- Consider non-compete and non-solicitation clauses, but be aware that Tennessee limits their enforceability (must be reasonable in time and scope).
- Get signatures from both parties and provide each with a copy.
- If using a notary, schedule a notarization appointment; Tennessee allows remote online notarization (RON) as well as traditional in-person notarization.
What a Employment Contract typically costs
In Tennessee, there is no state fee to create an employment contract if you draft it yourself. However, if you hire an attorney to review or draft a contract, legal fees typically range from $200 to $500 per hour, or a flat fee of $500 to $1,500 depending on complexity. Notary services typically cost $5 to $10 per signature in Tennessee, though some banks offer free notarization for account holders.
Ready to create your own Tennessee employment contract? Start by outlining your key terms, then use a reputable template or consult with a local employment attorney to ensure compliance with state laws. You can employment contract with a state-specific template here.
Create your employment contractBefore Writing a Tennessee Employment Contract
Prepare the necessary details and understand state-specific requirements before drafting an employment contract in Tennessee.
- Collect the employee's legal name, job title, start date, and work location.
- Decide on employment type (at-will, fixed-term, full-time, part-time) and include a clear at-will statement if applicable.
- Have a detailed job description ready to outline duties, reporting structure, and expectations.
- Determine compensation, pay schedule, overtime classification (exempt/non-exempt) under state and federal law.
- Consider including confidentiality, non-compete, and non-solicitation clauses if appropriate—ensure they are reasonable in scope and duration.
- Review Tennessee's requirements for employee handbooks, postings, and wage payment rules to ensure compliance.
DIY vs. hiring a lawyer for your Employment Contract
| Option | Cost | Time | Best for |
|---|---|---|---|
| DIY with a template | ~$40 | Minutes | Standard situations |
| State-specific template (recommended) | Low, one-time | ~15 min | Most people |
| Hire an attorney | $200–$1,500+ | Days–weeks | Complex cases |
Most people complete their employment contract online in about 15 minutes with a state-specific template — the same structure attorneys use, without the hourly bill.
Frequently asked questions
Do employment contracts in Tennessee need to be in writing?
Not generally, but written contracts are strongly recommended. Tennessee follows the statute of frauds, which requires certain contracts (e.g., those lasting more than one year) to be in writing to be enforceable. Always get written agreements to avoid disputes.
Are non-compete agreements valid in Tennessee?
Yes, but they must be reasonable in duration, geographic scope, and protect a legitimate business interest. Tennessee courts scrutinize non-competes and will not enforce overly broad restrictions. It's wise to consult an attorney when drafting one.
Can an independent contractor use an employment contract in Tennessee?
Independent contractors should use an independent contractor agreement rather than an employment contract, as employment contracts imply an employer-employee relationship. This agreement should clearly state the independent contractor status, payment terms, and scope of work to avoid misclassification issues.
Do I need a witness or notary for an employment contract in Tennessee?
For most employment contracts, a witness or notary is not required. However, some contracts like those involving real estate or certain non-compete agreements may require notarization. To be safe, you can have the contract notarized to add an extra layer of authenticity.