Job Offer Letters - What to Include:
Consider including the following five terms in job offer letters:
At-will employment: Clearly state that the employee is being hired as an at-will employee, and that either party may terminate employment with or without notice at any time. This is important to avoid disputes about the nature of the employment relationship.
Job description: Provide a detailed job description for the position being offered, including whether it is exempt or non-exempt. This can help avoid disputes over essential job functions and whether an employee is misclassified as exempt.
Integration clause: Include language in the offer letter that the terms outlined in the letter supersede any other promises or offers. This can help counter any claims later on that other promises were made to the employee.
Commission terms: If the employee is eligible for commissions, ensure that the commission agreement is in writing and signed by both parties. Carefully define key terms to avoid confusion, and be aware of how commissions affect the calculation of overtime pay for non-exempt employees.
Confidentiality provisions: If the company requires a confidentiality agreement, set forth the terms in the offer letter and have the applicant sign the agreement when accepting the job offer. Also, ensure that the applicant has no agreements with prior employers that would interfere with their duties and that they will not use any confidential information learned in previous positions.