Employment Contract Builder
When onboarding a new executive or key employee who needs a tailored agreement beyond a standard offer letter.
An employment agreement for an executive or key hire goes well beyond an offer letter. It must capture compensation, bonus, and equity terms; allocate confidentiality and invention-assignment obligations; calibrate restrictive covenants to what the governing state will enforce; and set clear termination and dispute-resolution mechanics. Getting these provisions right at the outset protects the company's trade secrets and reduces the risk of unenforceable or unlawful terms.
Building this kind of agreement from agreed deal points is structured drafting work that Claude does efficiently. Provide the employer and employee details, the compensation package, the work arrangement, and the governing state, and Claude returns an organized agreement with defined terms, tailored restrictive covenants, and the standard operative clauses. You set the business terms and the enforceability strategy; Claude assembles a coherent first draft so your review time goes to the high-stakes provisions.
Use the prompt below as a starting point. Replace the bracketed terms, then review the draft against the governing state's law — non-compete enforceability and invention-assignment carve-outs vary sharply, and several states ban most non-competes outright. Claude's output is a draft for attorney review and revision, not legal advice and not an agreement to execute unedited. The attorney remains responsible for the final terms.
The Prompt
Draft an employment agreement with the following terms: Employer: [COMPANY NAME AND STATE OF INCORPORATION] Employee: [NAME] Position: [TITLE AND DEPARTMENT] Start date: [DATE] Employment type: [at-will / fixed term of ___] Compensation: [BASE SALARY] Bonus: [STRUCTURE — discretionary, target %, MBO-based] Equity: [OPTION GRANT OR RSU DETAILS, IF ANY] Benefits: [KEY BENEFITS TO REFERENCE] Work location: [OFFICE / REMOTE / HYBRID] Governing state: [STATE] Include these provisions: 1. Position, duties, and reporting structure 2. Compensation, bonus, and equity terms 3. Benefits eligibility (reference company plans) 4. At-will statement (or fixed term with renewal) 5. Confidentiality and trade secret obligations 6. Invention assignment with state-specific carve-outs 7. Non-compete: [DURATION] within [GEOGRAPHIC SCOPE] — or note if state prohibits 8. Non-solicitation of employees and customers: [DURATION] 9. Termination provisions — for cause, without cause, resignation 10. Severance terms (if applicable) 11. Return of company property 12. Dispute resolution — [arbitration / litigation] in [VENUE]
Example Output
A 10-15 page employment agreement with defined terms, restrictive covenants tailored to the governing state, and signature blocks.
Illustrative example — names, figures, and facts are fictional.
EMPLOYMENT AGREEMENT This Employment Agreement (this "Agreement") is entered into as of April 15, 2026, by and between Nimbus Robotics, Inc., a Delaware corporation (the "Company"), and Maria Castellano (the "Executive"). 1. POSITION AND DUTIES. The Company employs Executive as Vice President of Engineering, reporting to the Chief Technology Officer. Executive shall devote her full business time and attention to the Company. 2. COMPENSATION. (a) Base Salary. The Company shall pay Executive an annual base salary of $245,000, payable in accordance with the Company's regular payroll practices. (b) Annual Bonus. Executive shall be eligible for a target annual bonus of 25% of base salary, based on performance objectives set by the Board. (c) Equity. Subject to Board approval, Executive shall receive an option to purchase 60,000 shares of common stock, vesting over four years with a one-year cliff, as set forth in Exhibit B. 3. BENEFITS. Executive shall be eligible to participate in the Company's benefit plans, as in effect from time to time. 4. AT-WILL EMPLOYMENT. Employment is at-will; either party may terminate the relationship at any time, with or without cause, subject to Section 7. 5. CONFIDENTIALITY. Executive shall hold the Company's Confidential Information and trade secrets in strict confidence during and after employment. 6. INVENTION ASSIGNMENT. Executive assigns to the Company all inventions conceived within the scope of employment, subject to any applicable statutory carve-out for inventions developed entirely on the Executive's own time without Company resources. 7. NON-SOLICITATION. For twelve (12) months following termination, Executive shall not solicit Company employees or customers with whom she had material contact. 8. TERMINATION; SEVERANCE. If the Company terminates Executive without Cause, she shall receive six (6) months of base salary continuation, subject to a release of claims. 9. DISPUTE RESOLUTION. Any dispute shall be resolved by binding arbitration in the State of Delaware. This Agreement is governed by Delaware law. IN WITNESS WHEREOF, the parties execute this Agreement as of the date first written above. NIMBUS ROBOTICS, INC. EXECUTIVE By: ____________________ ____________________ Name: Alan Whitfield, CEO Maria Castellano
Tips
- •Check the governing state's non-compete enforceability — California, Minnesota, North Dakota, and Oklahoma ban most non-competes.
- •Include the state-specific invention assignment carve-out (e.g., California Labor Code 2870).
- •Attach the offer letter as Exhibit A and equity grant as Exhibit B.
Frequently Asked Questions
When is this employment contract builder most useful?
Use it when onboarding an executive or key employee whose terms go beyond a standard offer letter — someone with equity, a bonus structure, and restrictive covenants. Supply the compensation package, the work arrangement, and the governing state, and Claude produces a tailored first draft. It is a fast way to get a complete agreement ready for your review and negotiation.
Can I send the generated agreement to the employee as-is?
No. Treat it as a first draft requiring review. Restrictive-covenant enforceability and invention-assignment requirements are highly state-specific, and several states prohibit most non-competes, so a generic clause may be void or unlawful. Confirm every provision against the governing state's law and the actual deal terms before the agreement is presented or executed.
How do I get the most accurate draft for restrictive covenants?
Specify the governing state precisely so Claude can flag where non-competes are unenforceable, and state your intended duration and geographic scope. Identify the equity terms and bonus structure in detail. Then independently verify the covenant provisions against current state statutes and case law — this is the area most likely to require substantive revision before the agreement is sound.
What are the ethics and accuracy obligations here?
The duty of competence requires you to verify that restrictive covenants and statutory carve-outs reflect current, jurisdiction-specific law rather than relying on the model's output. ABA Formal Opinion 512 also stresses confidentiality — avoid entering identifiable compensation or personnel data into consumer AI tools without adequate protections, and always review the final agreement before delivery.
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