What is a Texas Employment Contract?
A Texas employment contract is a legally binding agreement that is entered into by an employer and an employee. The parties will negotiate the terms of the contract like compensation and benefits and then create a document that will serve as the foundation for the business relationship.
Employers in Texas usually execute employment contracts when hiring high level permanent employees with unique skills, but these contracts can also be used when hiring temporary employees, contractors, and consultants.
Texas is an “at-will” employment state. This means that without a valid employment contract, an employer can fire an employee at any time without cause or reason. The only exception is that the termination cannot violate any laws like discrimination laws.
An employment contract is the only way to override the “at-will” employment law and protect an employee’s job.
Are Employment Contracts Enforceable in Texas?
Yes. Employment contracts are legally enforceable in Texas. Texas treats an employment contract like any other contract under the state contract laws. The agreement must be based on mutual consent, involve consideration, and cannot violate any laws or public policy.
Texas courts will not enforce a contract that is ruled to be unconscionable. For employment contracts, the following factors are considered when determining if a contract is unconscionable:
- Are any legal rights prohibited by the agreement?
- Is there a lack of mutuality?
- Is the contract unfairly one-sided?
Employers are usually in charge of drafting employment contracts so it is not uncommon to have a contract that heavily favors the employer over the employee. To ensure that the contract is legal in Texas, employers should have their employment contract drafted or reviewed by a contract lawyer.
What Are the Legal Requirements for Texas Employment Contracts?
Texas employment contracts must follow the legal requirements of Texas contract law and the Texas labor code. It is common for employment contracts to be in writing, but oral employment contracts with a duration of less than one year can also be enforced.
Many people think of an employment contract as an express written contract with specific terms and conditions. While this is one type of employment contract, other written documents can also create a legally binding contract.
Legally binding employment contracts can be created in the following ways:
- Verbal agreements
- Implied agreements based on conduct and representations
- Offer letters
- Employee handbooks
- Company notice boards
- Emails
Employers need to be aware that contracts can be created from a variety of communications and actions.
One essential element that must be included in an employment contract to make the contract legally binding is a definite term of employment or specific circumstances under which an employee can be fired. Without defining duration of employment or causes for termination, the terms of employment could be interpreted as “at will” and leave an employee vulnerable to termination for any reason.
Types of Texas Employment Contracts
Employment contracts come in many forms based on the type of work the company does or the type of employee being hired to complete the job. Restrictive agreements are often used to protect the employer’s business interests.
Some common types of Texas employment contracts include:
- Permanent employment contract. Used by a company to hire a permanent employee with regular hours and an hourly wage or salary.
- Contractor agreement. Used when a company hires a contractor or a freelance worker who is not an employee of the company but will be completing work for the company.
- Non-disclosure agreement (NDA). A restrictive contract that prevents the employee from releasing valuable information about the business.
- Non-compete agreement. Protects the employer by limiting the employee from working for competitors or creating a competing business.
See Employment Contract by State
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- South Carolina
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Meet some of our Texas Employment Contract Lawyers
Joshua B.
Josh Bernstein has been serving real estate and corporate transactional clients since 2002. His experience is varied, and he enjoys working on and puzzling out novel and complex corporate and real estate matters. Josh’s experience includes, among other things, the following: representation of public companies in connection with SEC reporting and compliance work (proxies, 10-K’s; 10-Q’s; 8-K’s, etc.); representation of public and private company securities issuances (including private placements, and other similar offerings); assistance in structuring and drafting joint ventures, both for investors and operating partners, and including both real estate and corporate ventures; handling public and private company mergers and acquisitions; and asset sales and dispositions; assisting clients, big and small, with real estate acquisitions, sales and financings; managing large-scale and multi-state real estate portfolio acquisitions, dispositions and financings; complex condominium creation, structuring and governance work, including: commercial condominiums, use of condominiums as a land planning tool, wholesale condominium property acquisitions and dispositions, and rehabilitating failed or faulty condominium legal structures to make ready for sale; development of restrictive covenants and owners’ association documents for master-planned communities; compliance with federal statutes governing real estate sale and development (including, without limitation, the Interstate Land Sales Full Disclosure Act, the Housing for Older Persons Act, and the Americans with Disabilities Act); representation of real estate lenders, for both improved and unimproved property, and including numerous construction financings secured by real estate; assistance with commercial leasing; from both the landlord and tenant side, and including condominium leasing; training residential home and condominium sales staff for compliance with applicable local and federal law; and workouts of all kinds. When he’s not busy lawyering, Josh may be found watching 80’s commercials, flying a single-engine plane, playing poker, or trying to be a good dad.
August 30, 2023
Joe C.
Born in Dallas, Texas, Joe Craddock represents clients in a range of litigation and transactional matters covering Contracts, Real Property, Oil and Gas, and Construction Defects.
August 31, 2023
Bryan Kennedy C.
10-year lawyer with a B.A. in Rhetoric and Writing. I use clear, direct language instead of hollow jargon to draft effective legal documents for family law, business, and general contract situations.
September 4, 2023
Tetyana J.
I am a highly accomplished and dedicated immigration attorney, renowned for providing top-tier immigration legal services that consistently exceed expectations. I am known for my expertise in offering exceptional representation across a broad spectrum of immigration cases, including EB-2 National Interest Waivers (NIW), O visas, EB-1A, family-based immigration, TPS, Adjustment of status, asylum petitions, and skillful advocacy in Immigration Court proceedings. My clients rely on my unwavering commitment to their immigration needs, trusting in my in-depth knowledge of the intricate legal processes and my steadfast determination to secure favorable outcomes. My reputation as a leading authority in the field is a testament to my unwavering commitment to delivering unparalleled, high-quality immigration services. In addition, I am fluent in Ukrainian and Russian.
September 6, 2023
Christian D.
Christian Davila received his Juris Doctorate from St. Mary’s University and becoming a member of the State Bar of Texas in 2013. Before law school, he studied at Texas A&M International University (TAMIU), and participated in multiple programs across various fields of study, including the University of Texas Medical Branch-School of Medicine’s “Early Medical School Acceptance Program,” and the Hispanic Association of Colleges & Universities’ “National Internship Program” at the Library of Congress in Washington, D.C. Christian’s legal experience includes criminal law (both prosecution and defense), family law, transactional law, business litigation, real estate litigation, and general civil litigation. Christian was previously in-house counsel for a multi-million dollar apartment construction and management company, handling all property acquisition, document drafting, negotiations, and litigation. Christian is a former member of the American Association for Justice (formerly the Association of Trial Lawyers of America), and he has been distinguished by the National Trial Lawyers as one of their TOP 40 Civil Plaintiff attorneys in Texas UNDER 40 years old. He likes weightlifting, reading comicbooks, and being silly with his kids in his spare time.
September 13, 2023
Joseph K.
I am a business, transactions, and estate attorney working out of central Texas.
October 1, 2023
Lynette P.
I am licensed in both Texas and Arkansas but actively working in Arkansas. My primary focus is criminal defense, family law, and estate planning (wills and trusts).
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Browse Lawyers NowEmployment
Employment Contract
North Carolina
What's position hierarchy in an employment contract?
I am a potential employee considering a job offer from a company. I have received a copy of the employment contract, but I am confused about the position hierarchy outlined in it. Specifically, I am unsure of the differences between the various job titles and the roles and responsibilities associated with each one. I would like to know more about the position hierarchy in the contract to better understand the job I am considering.
N'kia N.
Position hierarchy may vary, as it is typically based on such factors as industry standards, company size, and internal policies. Before accepting an employment offer, a prospective employee should have a clear understanding of where the proposed position stands in the prospective employer's position hierarchy, as well as how the hierarchy affects the duties and responsibilities for that position. If the position hierarchy in a proposed employment contract or an employment offer letter is confusing, the prospective employee should seek clarification from the proposed employer.
Contracts
Employment Contract
Ohio
What's personal leave in an employment contract?
I have recently been offered a job, and the employment contract I have been provided with states that I am entitled to personal leave. I am not sure what this is, or what it entitles me to. I would like to know what rights and responsibilities I have regarding personal leave, and what the employer's expectations are of me with regards to this leave.
Jeffrey K.
Personal leave sometimes replaces vacation and sick time. Some employers just give employees time off for whatever reason the employee chooses. To know more about the rights and responsibilities, you should speak to HR at your new employer who will help you with the employer's expectations and your rights under the leave provision in your contract. Also, look at your contract as it may provide insight as to how to implement the leave. When in doubt, speak to HR. Thanks.
Arbitration
Employment Contract
California
What's the arbitration agreement in an employment contract?
I am currently in the process of negotiating an employment contract with a new employer. I am concerned about the arbitration agreement in the contract, as I am not sure what it is or how it could affect me in the future. I want to make sure that I understand the implications of the arbitration agreement before signing the contract.
Gagandeep K.
An arbitration agreement is a legally binding contract between two parties or more so in this case between you and the employer. In the Arbitration Agreement both parties agree to use alternative dispute resolution (e.g., mediation, settlement conferences, neutral evaluation, arbitration) rather than pursuing civil court litigation in case a dispute arises. The Arbitration Agreement typically describes the scope of the disputes covered as well as the process, procedure and other requirements related to arbitration. You can read more about Arbitration Agreement here https://www.contractscounsel.com/t/us/arbitration-agreement.
Employment
Employment Contract
North Carolina
What's termination notice in an employment contract?
I recently accepted a job offer with a new company and I was given an employment contract to sign. I was looking through the contract and noticed that it mentions something about a termination notice. I'm not sure what this means or how it applies to my employment, so I wanted to ask a lawyer to get a better understanding of this clause.
Ryan D.
A termination notice is a provision in an employment contract that specifies the amount of notice an employer must give an employee if they wish to terminate the contract, or vice versa if the employee wishes to leave. This is an important clause, as it offers some level of job security for the employee and some level of predictability for the employer. In most states, including North Carolina, employment is considered "at-will" unless there is a contract in place that states otherwise. This means that either the employer or the employee may terminate the employment relationship at any time, for any reason, or for no reason at all, as long as the reason isn't illegal (like discrimination). If your contract includes a termination notice clause, this "at-will" status is likely modified to some extent. The specific details would depend on the exact wording in your contract. It could require either party to provide a notice (often 2 weeks, 1 month, or sometimes longer) before terminating the contract. That notice period is intended to give the other party time to adjust plans accordingly. For the employee, it might mean finding a new job; for the employer, it might mean finding a replacement.
Employment
Employment Contract
Colorado
Are employment contracts confidential?
I'm considering taking a second job but would not want my first employer to know. Is there any way for them to find out? I am not sure what all of the language in the contract says and may need to get it reviewed, but I wanted to see if these contracts are kept confidential so that my employer never finds out.
Donya G.
Typically, yes. There s generally a confidential section in your employment agreement. Is there something specific you are worried about? You can have an attorney give a consultation, review the agreement and advise you. I can do that for you. You can connect with me through the website. Thanks Donya Gordon
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