Hiring the right team is critical to your business’s success. But bringing someone on board is more than just a handshake—it’s a legal relationship that should be clearly defined. That’s where employment agreements come in.
For businesses across Dallas-Fort Worth, employment contracts offer a practical way to protect the company, set expectations, and minimize future disputes. Whether you’re hiring your first employee or expanding your workforce, well-conceived employment agreements can benefit your business.
What Is an Employment Agreement?
An employment agreement is a written contract between an employer and an employee that outlines the terms and conditions of employment. It can cover everything from job duties and compensation to confidentiality and termination clauses.
While Texas is an at-will employment state—meaning either party can terminate the relationship at any time, for almost any reason—a written agreement can still provide valuable protections for both sides. It can also make it easier to enforce rights and resolve conflicts if issues arise later.
Key Clauses to Consider
Not every employment agreement looks the same. The terms you include will depend on your industry, your company’s needs, and the employee’s role. That said, there are some standard clauses Dallas-Fort Worth businesses often include:
- Job title and responsibilities: Clarify the employee’s role, reporting structure, and expectations.
- Compensation and benefits: Detail salary, bonuses, commissions, and any benefits like health insurance, PTO, or retirement plans.
- Work hours and location: Specify whether the position is full-time or part-time, remote or in-office.
- Confidentiality clause: Prevent employees from disclosing sensitive business information.
- Non-compete agreement: Limit an employee’s ability to work for competitors after leaving the company (subject to Texas law).
- Non-solicitation clause: Stop former employees from poaching your clients or staff.
- Dispute resolution: Set the method for resolving any legal disagreements—whether through mediation, arbitration, or litigation.
- Termination provisions: Define notice requirements, severance pay, and grounds for termination.
Clear terms help prevent misunderstandings and reinforce professionalism. When everyone knows what to expect, the working relationship tends to run more smoothly.
Enforceability in Texas
Texas courts generally support the idea of freedom to contract. However, not all terms are enforceable—especially when it comes to restrictive covenants like non-compete clauses.
Under Texas law, non-compete agreements must be:
- Part of an otherwise valid employment agreement
- Supported by consideration (something of value given in return)
- Reasonable in scope, geography, and duration
A non-compete clause that’s too broad or vague may not hold up in court. That’s why it’s a good idea to work with a Dallas-Fort Worth business attorney who understands what local courts consider fair and enforceable.
When Should You Use an Employment Agreement?
Not every employee needs a lengthy contract. But in many cases, having one makes sense—especially for:
- Executive or leadership roles
- Employees with access to trade secrets or sensitive data
- Sales staff or client-facing personnel
- Remote workers operating outside of Texas
- Any employee whose departure could harm the business
In other situations, you should use an introductory offer letter paired with an employee handbook and separate confidentiality or non-compete agreements. The right approach depends on your workforce, industry, and risk tolerance.
Common Mistakes to Avoid
When it comes to employment agreements, a few missteps can create big headaches. Here are some pitfalls we see Dallas-Fort Worth businesses run into:
- Using outdated templates that don’t reflect current Texas law
- Failing to define compensation clearly leads to disputes over bonuses or commissions
- Overreaching on non-compete clauses, making them harder to enforce
- Not including a dispute resolution clause, which can lead to costly litigation
- Skipping the agreement entirely, relying instead on informal arrangements
Having a written agreement isn’t just about legality—it’s about clarity. It can help both parties feel confident about the working relationship from day one.
How a Dallas-Fort Worth Employment Attorney Can Help
At Ryan G. Cole Law, we assist businesses throughout the Dallas-Fort Worth area with employment agreements that reflect their priorities and comply with Texas law. Whether you need help drafting a contract from scratch or reviewing an existing one, we can guide you through the process and help you avoid costly missteps.
We understand the unique needs of Texas employers and offer practical advice for protecting your business without overcomplicating things. If your company is hiring or revisiting employment practices, reach out today.