Technology companies who want to make it in an already cutthroat industry can gain an edge by learning what to look for and what to include in employment contracts. Negotiating salary and starting a new position mean plenty of documents to have employees sign, so ensuring you know what you are asking them to sign is a good first step to becoming more knowledgeable.

Companies should provide their employees with employment agreements specifying salary, commission, position title, benefits, at-will status or contract length, and other basics. Place this information in writing and include a clause specifying that the agreement is the entire agreement between the parties and will not change because of prior or contemporaneous statements or other communications from the company to the employee. Such a clause prevents the situation where a hiring manager tells an employee he can work from home one day a week or some other benefit but the company cannot deliver on the promise.

Further, employment agreements should specify all material terms of the employment agreement, including which benefits an employee will receive, or the information should be included in an attachment to the agreement. Benefits, salary, and other basics are often considered material terms in an employment agreement and breach of these terms could lead to a break-up between the company and a valued employee.

Many tech companies require employees to sign confidentiality or non-disclosure agreements. These agreements help companies prevent ideas from leaking outside the company both during and after employees work for them. The definition of confidential information in such an agreement should include industry-specific concepts and objects, such as lists of customer information.

Most company-drafted employment agreements have arbitration clauses. In California, these clauses should specify the county or city where the arbitration must take place and which arbitration rules will apply, that a decision will be made by a neutral arbitrator in a written decision, that the employer will pay all of the costs of the arbitration except those that would normally be paid by the employee at the initiation of a lawsuit, such as a filing fee, that and that adequate discovery will be permitted. Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 90. The employee should be explicitly warned in large print that he is giving up his right to sue in court and should be given a copy of the arbitration rules that will apply.

Businesses may wish to have their employees sign additional documents on employment, such as meal break waivers, alternative workweek elections, or industry-specific contracts. Keep in mind that in California, non-competition agreements are not enforceable. Becoming familiar with common contracts in your industry will help you when expecting employees who are sometimes unfamiliar with them to sign.

Securing new employees is often the first step in growing your business. Protect yourself and your business by seeking out an experienced business attorney to assist with contracts. Michael Leonard, Esq., of San Diego Corporate Law, named a “Rising Star” for 2017 by SuperLawyers, has the experience and the insight to resolve contract-related issues or prevent them before they arise. To schedule a consultation, e-mail San Diego Corporate Law or call Mr. Leonard at (858) 483-9200.