Search thousands of topics on CostHelper

BROWSE ALL TOPICS >> babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business sports weddings
CostHelper > Small Business  > Employment Contract

Employment Contract Cost


How Much Does an Employment Contract Cost?

 
low costLow: Do-It-Yourself Samples Available Freeaverage costMedium: Simple Forms Can Be Customized Online for $10-$50+high costHigh: Attorneys Can Tailor Forms for $100-$1,000+
post Post    

Most employees work "at will,"[1] meaning the employer can legally fire them at any time, without giving a specific cause. An employment contract often limits the employer's ability to fire the employee, but can also limit the employee's ability to leave with only a few weeks' notice or to use confidential company information to compete against the company. An employment contract can outline the severance package an employee will receive, and under what circumstances. It's kind of like a prenuptial agreement for a business relationship in that it spells out what each party can expect, especially if things turn sour.

Typical costs:

  • It's relatively easy to create a document yourself. Services such as LawDepot.com or PublicLegalForms.com[2] provide online forms that can be adapted to your needs for $10-$50 or more, depending on the level of service/advice provided.
  • If you want a contract tailored to your specific situation and anticipating potential legal issues, most attorneys charge $100-$300 or more an hour. After meeting with you and hearing the details of your circumstances, a lawyer might quote a flat fee for creating a basic employment contract, usually anywhere from $100-$1,000. On an hourly rate, a simple, straightforward employment agreement can be drawn up with one or two hours of legal time, or $100-$600; more complicated situations may require 3-4 hours of legal work, for $300-$1,200. That's for drawing up the contract, not doing the actual negotiating.
  • If you have your lawyer also handle the negotiations for you, it could take more time and cost more. Remember that your attorney will have to talk with you about what you want, talk with the other party, talk with you again about the other party's proposals, then get back to the other party with your response. A negotiation that might take you about 15 minutes in direct conversation with the other party could take an hour of your attorney's time.
  • Having an attorney review an employment contract proposed by the other party and then suggest changes could take an hour or less, or anywhere from $50-$300 or more depending on how much work is involved and your attorney's hourly rate. Again, having your attorney negotiate any changes to the proposed agreement directly with the other party's attorney could raise the cost, depending on the time involved.
Related articles: Business Sale Attorney, Non-Disclosure Agreement

What should be included:
  • An employment contract typically includes the terms of employment (compensation/salary, sick leave, vacation, etc.), details about the employee's responsibilities and reporting relationships, specifics about any stock options or ownership interests given to the employee, and other agreements, such as a potential severance package. FindLaw.com lists 10 provisions[3] that might be included in an employment contract.
  • CIO.com describes how to negotiate from the employee's perspective[4] and FindLaw.com looks at the process from the employer's point of view[5] .
Discounts:
  • If you're going to be drawing up more than one employment contract, have an attorney help you create a template tailored to your company's needs and policies, so you can reuse the form many times, with only minor changes for each specific employee, rather than paying your attorney to create a new document each time.
  • Some people cut costs and still get legal guidance by using a free sample employment contract to create their own document, then have an attorney review it. This works only if you start with a good sample contract.
Shopping for an employment contract:
  • In business law, attorneys who handle legal disputes are litigators while those who handle contracts, securities and other business matters are transactional lawyers. An Illinois attorney provides tips for selecting a business lawyer[6] .
  • Referrals to employment contract attorneys are available from Lawyers.com[7] and FindLaw.com[8] .
  • Your attorney should provide you with a written fee agreement; be sure you understand what is or is not included, and all the potential costs.
post Post    
CostHelper News


7 Ways to Stretch Your Reduced Food Budget
End of the year budgets are tight for everyone, especially in this economy.It's especially hard for the millions of Americans who depend on government programs like food stamps to help make ends meet. || Posted November 11 2013


Fix-it Favorites: Duct Tape and WD-40
My mother taught me that all home fixit-projects can be accomplished with either duct tape or WD-40. If something shouldn't move and it does, use duct tape. If something should move and it doesn't, use WD-40. || Posted September 30 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments


 

Comment On Your Experience With an Employment Contract
 
Subject:  *
Amount Spent:  * total
Service or Attorney: Law Firm: 
Comments: 
Purchased:  Year: 
City:  * State:  *
 
Information about you:
Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
*=required field.
 



External Resources:
  1.  labor-employment-law.lawyers.com/human-resources-law/Employer-At-Will-Employment-F...
  2.  www.ilrg.com/forms/employmt.html
  3.  smallbusiness.findlaw.com/employment-law-and-human-resources/employment-contract-p...
  4.  www.cio.com/article/100252/How_to_Negotiate_an_Employment_Contract/1
  5.  smallbusiness.findlaw.com/employment-law-and-human-resources/pros-and-cons-of-writ...
  6.  www.illinoisbusinessattorney.com/articles/selecting_business_attorney.html
  7.  www.lawyers.com/employment-contracts/find-law-firms-by-location/
  8.  lawyers.findlaw.com/lawyer/practice/Employment-Law-Employer
More Small Business Topics
Check Out All Costs for Small Business How Much Does a Fax Machine Cost? How Much Does an Event Planner Cost? How Much Do Business Cards Cost?

Search Thousands of Topics on CostHelper.com

 
Today's Featured Cost Articles

About CostHelper
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community
economics
Paid: 200.00
... [more]
-rishabh sharda
Summer School Cost
Cost of painting a car
Paid: 1500.00
I've been doing body work and painting cars for nearly 40 years and watch the cost of paint and materials increase drastically. The old saying you get what you pay for absolutely applies to painting a car... [more]
-D's Nutz & Bolts
Auto Painting Cost
Bookkeeping,Payroll,legal issues for llc, and tax prep
Paid: 400.00
new business looking for bookkeeper, tax prep , and knowledge of LLC regulations and required tax forms sent out for states requirements (Arizona)... [more]
-Bonnie Rose (Owner)/A.Freeman
Bookkeeper Cost
Clearing land and debi
Paid: 300.00
Burnt trailer needs bee tore down and drive way needs to be pushed some trees has falling down... [more]
-Jewel singletary
Backhoe Cost
1 hour later, no results, no
Paid: 1956.00
I was charged already by University Physician Group:$190 for Spiromatry$40 for the test$30 for CO2 Diffuse CapacityI spent $40 on the copayI was later sent a bill for $1,956 additional directly from the hospital and not insurance paid... [more]
-Robby E.
Pulmonary Function Test Cost
Foundation Repair
Paid: 22250.00
1800 Sq ft house, 1 level:Diagonal cracks in brick all around the house; exterior right front wall of attached garage appeared to have heaved; patched interior walls were revealed as cracks after purchase; door casings separated at top corn... [more]
-Cheney
Foundation Repair Cost