Notes for the company (delete before sending): Yellow marks each blank. Written for a full-time employee in the United States. Use the law of the state where the employee will work: California, for example, generally does not let an employer apply another state's law to a California employee. Some states also require a separate written pay notice at hire, so check your state's rules. This letter has no noncompete, because many states ban or limit them for employees. Montana limits at-will employment after a probation period.
[Company name]
[Company address]
[Date]
[Candidate full name]
[Candidate address or email]
RE: Offer of Employment
Dear [Candidate first name],
[Company name] (the “Company”) is pleased to offer you employment on the following terms:
Position. Your title will be [Job title], and you will report to [Manager name], [Manager title]. This is a full-time, [exempt / non-exempt] position. Your employment will begin on [Start date], and your primary work location will be [City and state, or remote from your home in City and state]. While employed by the Company, you will not engage in any other employment, consulting or business activity that would create a conflict of interest with the Company.
Compensation. The Company will pay you a starting salary at the rate of $[Annual salary] per year, payable on the Company’s regular payroll schedule, currently [every two weeks / twice a month], and subject to applicable deductions and withholdings. [Optional: You will also receive a one-time signing bonus of $[amount], paid with your first regular paycheck. / Optional: You will also be eligible for commissions under the Company’s commission plan, as described in a separate written plan.]
Stock Options. Subject to the approval of the Company’s Board of Directors (the “Board”), you will be granted an option to purchase [Number of shares] shares of the Company’s Common Stock (the “Option”). The exercise price per share will equal the fair market value of the Common Stock on the date the Board grants the Option, as determined by the Board. The Option is intended to be an incentive stock option to the extent permitted by law. The Option will vest over [four] years from your vesting start date: [25]% of the shares will vest after [12] months of continuous service, and the rest will vest in equal monthly installments over the following [36] months, in each case subject to your continued service on each vesting date. The Option will be governed by the Company’s [name of equity incentive plan] and your stock option agreement.
Benefits. You will be eligible to participate in the employee benefit plans the Company maintains from time to time, which currently include [for example: medical, dental and vision insurance and a 401(k) plan], subject to the terms and eligibility requirements of those plans. You will also receive [paid time off and paid sick leave policy]. The Company may change its benefits from time to time.
Confidential Information and Invention Assignment Agreement. As a condition of your employment, you must sign and comply with the Company’s standard Confidential Information and Invention Assignment Agreement, which prohibits the unauthorized use or disclosure of Company confidential information and assigns to the Company the inventions you create in the course of your employment. You represent that your employment with the Company will not breach any agreement you have with any third party, and you agree not to bring to the Company or use in your work any confidential information or materials belonging to any former employer or other third party.
Protected Rights. Nothing in this letter or in the Confidential Information and Invention Assignment Agreement limits your right to discuss your wages, hours or other working conditions, or to report possible violations of law to, file a charge with, or take part in an investigation by any government agency.
Employment Eligibility. As required by law, this offer is subject to satisfactory proof of your identity and right to work in the United States. You must provide this documentation to the Company within three (3) business days after your employment begins. [Optional: This offer is also contingent on the satisfactory completion of a background check, conducted in accordance with applicable law.]
At-Will Employment. Your employment with the Company will be “at will.” You may end your employment at any time and for any reason, with or without cause or notice, and the Company may do the same. Although your job duties, title, compensation and benefits may change over time, the at-will nature of your employment may be changed only in an express written agreement signed by you and the Company’s Chief Executive Officer.
Entire Agreement. This letter, together with the Confidential Information and Invention Assignment Agreement and the documents governing the Option, is the entire agreement between you and the Company regarding its subject matter and supersedes all prior representations and agreements, whether written or oral. This letter is governed by the laws of the State of [State where you will work].
To accept this offer, please sign and date this letter and return it to me. This offer will expire if not accepted by [Offer expiration date]. We look forward to working with you.
Very truly yours,
[Company name]
By: ______________________________
Name: [Signer name]
Title: [Signer title]
ACCEPTED AND AGREED:
______________________________
[Candidate full name]
Date: ____________________________