1. Position, Start Date, and Parties
1.1 Position and Title. Employee is employed in the position of [[Position / Title, e.g., Software Engineer, Sales Manager, Administrative Assistant]], reporting to [[Supervisor Name and Title]].
1.2 Start Date. Employment shall commence on [[Start Date]] (the "Start Date"). Employee's first day of work is the Start Date unless otherwise agreed in writing.
1.3 At-Will Employment Statement. Pursuant to A.R.S. § 23-1501, employment in Arizona is presumed to be at-will. Either Party may terminate the employment relationship at any time, with or without cause or advance notice, subject to the terms of this Agreement. This at-will relationship may be modified only by a written agreement signed by an authorized representative of Employer and Employee. Nothing in this Agreement or any policy or practice of Employer creates a contract of employment for a specific duration or alters the at-will nature of employment.
Alternative Fixed-Term Provision (if selected): If the Parties elect a fixed term, employment shall be for the period beginning [[Start Date]] and ending [[End Date]], unless earlier terminated as provided herein. At the expiration of the Term, employment shall convert to at-will unless the Parties execute a written extension.
2. Compensation, Pay Frequency, and Classification
2.1 Base Compensation. Employer shall pay Employee:
- [ ] Annual base salary of $[[Annual Base Salary]], or
- [ ] Hourly wage of $[[Hourly Rate]] per hour.
Compensation is subject to all applicable federal, state, and local tax withholdings and authorized deductions.
2.2 Pay Frequency. In accordance with the Arizona Wage Act (A.R.S. § 23-350 et seq.), Employer shall pay Employee no less frequently than bi-weekly (every two weeks). Paydays shall be [[specify, e.g., every other Friday]]. If a payday falls on a holiday, payment will be made on the preceding business day.
2.3 FLSA Exempt / Non-Exempt Classification. Employee's position is classified as:
- [ ] Exempt from overtime requirements of the Fair Labor Standards Act (FLSA) and Arizona law under the [[executive / administrative / professional / computer employee / outside sales / highly compensated]] exemption. Employee is paid on a salary basis and is not entitled to overtime pay.
- [ ] Non-Exempt. Employee is entitled to overtime compensation at one and one-half (1.5) times the regular rate of pay for all hours worked over forty (40) in a workweek, in accordance with the FLSA (29 U.S.C. §§ 201 et seq.). Arizona does not have a separate state overtime statute for most private employers; the FLSA governs.
Employer has made this classification in good faith based on Employee's duties. Employee agrees to notify Employer promptly if Employee believes the classification is incorrect.
2.4 Bonus, Commission, and Equity. Employee [[is / is not]] eligible for [[describe bonus plan, commission structure, equity grants, or "no variable compensation"]]. Any bonus or commission is discretionary unless a separate written plan provides otherwise and is subject to the terms of the applicable plan document.
3. Benefits, PTO / Vacation Policy, and Payout on Termination
3.1 Benefits. Employee is eligible to participate in Employer's benefit plans as may be in effect from time to time for similarly situated employees, subject to the terms of those plans. Current benefits may include health insurance, dental, vision, retirement plans, and life/disability insurance. Details are provided in the employee handbook or separate plan documents.
3.2 Paid Time Off (PTO) / Vacation. Employee shall accrue PTO / vacation at the rate of [[X hours / days]] per [[pay period / month / year]], up to a maximum accrual of [[Y hours / days]]. [[Describe any additional sick leave, holidays, or bereavement leave]].
Arizona law does not require payout of accrued but unused PTO upon termination unless Employer's policy or a contract treats PTO as wages or creates a contractual right to payout. Employer's policy regarding PTO payout on termination is: [[PTO is / is not paid out upon termination; describe any conditions or "accrued unused PTO will be paid in accordance with Employer's then-current policy"]]. Any payout is subject to applicable law.
3.3 Other Benefits. [[Describe 401(k), health stipends, remote work stipend, or other benefits or "No additional benefits beyond those described above".]]
4. Duties, Reporting Structure, and Performance Standards
4.1 Duties. Employee shall perform the duties and responsibilities set forth in Exhibit A (Position Description) and such other duties as may be reasonably assigned by Employer consistent with Employee's position and qualifications.
4.2 Reporting. Employee reports directly to [[Supervisor Name and Title]] or such other person as Employer may designate.
4.3 Performance Standards. Employee shall perform all duties diligently, competently, and in accordance with Employer's policies, procedures, and reasonable instructions. Employer may conduct performance reviews on a [[annual / semi-annual / other]] basis. Failure to meet performance expectations may result in corrective action, up to and including termination.
4.4 Full-Time Commitment; Conflicts. Employee shall devote such time, attention, and energy as necessary to perform the duties of the position. Employee shall not engage in any other employment or business activity that conflicts with Employee's duties or creates a conflict of interest, without prior written consent of Employer.
5. E-Verify Compliance
Employer participates in the federal E-Verify program as required by A.R.S. § 23-214 for employers in Arizona. Employee must complete Form I-9 and provide acceptable documentation establishing identity and employment authorization within three (3) business days of the Start Date. Employment is contingent upon successful completion of E-Verify verification and any other required background checks.
6. Confidentiality Obligations and Intellectual Property Assignment
6.1 Confidentiality. Employee acknowledges that in the course of employment, Employee will have access to Confidential Information of Employer, including but not limited to trade secrets, customer lists, pricing, business plans, financial data, proprietary methods, and other non-public information. Employee agrees not to use or disclose any Confidential Information during or after employment, except as required in the performance of duties or as required by law. This obligation survives termination of employment.
6.2 Intellectual Property Assignment. All inventions, works of authorship, ideas, discoveries, improvements, and other intellectual property conceived, developed, or reduced to practice by Employee, alone or jointly, during employment and within the scope of Employee's duties or using Employer's resources (including after-hours work on company projects) are and shall remain the sole property of Employer. Employee hereby assigns and agrees to assign all right, title, and interest in such intellectual property to Employer. Employee agrees to execute any documents and take any actions reasonably requested by Employer to perfect or evidence such ownership. This assignment does not apply to inventions that qualify for protection under applicable state law as Employee's own (if any such carve-out is disclosed in writing prior to use of company resources).
6.3 Return of Property. Upon termination or at any time upon request, Employee shall immediately return all Employer property, documents, data, devices, access credentials, and copies or extracts of Confidential Information.
7. Non-Compete, Non-Solicit, and Restrictive Covenants (A.R.S. § 23-1501.01)
7.1 Non-Compete. During employment and for a period of [[X months]] following termination of employment for any reason, Employee shall not, directly or indirectly, engage in any business that competes with Employer within the geographic area of [[Describe geographic scope, e.g., the State of Arizona or the metropolitan area of [[City]]]], in the capacity of [[employee, consultant, owner, partner, or other]], provided that such restriction is reasonable in scope, duration, and geography.
Pursuant to A.R.S. § 23-1501.01 (effective 2023), a non-compete agreement with an employee who earns $500,000 or less per year in annualized cash compensation must be reasonable in scope, duration, and geographic area to be enforceable. For lower-wage workers, additional limitations may apply. Non-competes that are overbroad may be reformed by a court under the "blue pencil" doctrine to the extent necessary to make them enforceable.
7.2 Non-Solicitation of Customers / Employees. During employment and for [[X months]] after termination, Employee shall not solicit Employer's customers, clients, or employees with whom Employee had material contact during employment, for the purpose of providing competing services or employment, to the extent permitted by law.
7.3 Reasonableness and Enforcement. Employee acknowledges that the restrictions are reasonable and necessary to protect Employer's legitimate business interests. If any court determines that any restriction is unenforceable, the Parties agree that the court may modify (blue-pencil) the restriction to the minimum extent necessary to make it enforceable.
7.4 Consideration. The non-compete and non-solicit covenants are supported by the mutual promises in this Agreement and the employment opportunity provided.
8. Drug Testing Policy
Employee [[is / is not]] subject to pre-employment, reasonable suspicion, post-accident, and/or random drug and alcohol testing pursuant to Employer's policy and A.R.S. § 23-493 (Arizona Drug Testing of Employees Act). Testing shall be conducted in accordance with applicable law, including notice and confirmation testing requirements. A positive test or refusal to test may result in disciplinary action, up to and including termination. Details are set forth in the employee handbook or separate policy.
9. Termination
9.1 Termination by Employer. Employer may terminate employment at any time, with or without cause, subject to the at-will doctrine and any notice or severance provisions agreed in writing.
9.2 Termination by Employee. Employee may resign at any time by providing [[notice period, e.g., two (2) weeks]] written notice. Employer may, in its discretion, accept the resignation immediately and pay salary in lieu of notice.
9.3 Return of Property and Final Pay. Upon termination, Employee shall return all property as provided above. Final pay, including any earned wages and any PTO payout required by policy or law, shall be provided in accordance with Arizona law (generally on the next regular payday).
9.4 Survival. Sections 6, 7, 9.4, 10, 11, and 12 shall survive termination of employment and this Agreement.
10. Governing Law, Dispute Resolution, and Venue
This Agreement shall be governed by and construed in accordance with the laws of the State of Arizona, without regard to conflicts of law principles.
Any dispute arising out of or relating to this Agreement or Employee's employment shall first be attempted to be resolved through good-faith negotiation. If not resolved, the dispute shall be resolved by binding arbitration in [[City]], Arizona, under the rules of the American Arbitration Association (Employment Arbitration Rules) or JAMS, or by litigation in the state or federal courts located in [[County]], Arizona. [[Include or omit arbitration clause consistent with separate arbitration agreement if used]].
11. General Provisions
11.1 Entire Agreement. This Agreement, including exhibits, constitutes the entire agreement between the Parties and supersedes all prior agreements, understandings, and representations relating to the subject matter.
11.2 Severability. If any provision is held invalid or unenforceable, the remaining provisions shall continue in full force.
11.3 Amendment. This Agreement may be amended only by a writing signed by both Parties.
11.4 Waiver. No waiver of any breach shall be deemed a waiver of any other breach.
11.5 Counterparts; Electronic Signatures. This Agreement may be signed in counterparts and by electronic signature, each of which shall be deemed an original.
11.6 Notices. Notices shall be in writing and delivered by email with confirmation, certified mail, or overnight courier to the addresses above.
12. Acknowledgment
Employee acknowledges that Employee has read this Agreement, understands it, has had the opportunity to consult with an attorney, and is signing it voluntarily. Employee understands that employment is at-will under Arizona law unless a fixed-term provision is expressly elected above.
Signatures
EMPLOYER:
Signature: _______________________________
Printed Name: [[Authorized Signatory Name]]
Title: [[Title]]
Date: _______________________________
EMPLOYEE:
Signature: _______________________________
Printed Name: [[Employee Full Legal Name]]
Date: _______________________________
Exhibit A - Position Description and Key Responsibilities
Position Title: [[Position / Title]]
Reports To: [[Supervisor]]
Location: [[Primary work location - office / hybrid / remote in Arizona]]
Key Duties and Responsibilities:
- [[Primary responsibility 1]]
- [[Primary responsibility 2]]
- [[Primary responsibility 3]]
- [[Additional duties]]
Required Qualifications: [[Education, experience, certifications, skills]]
Preferred Qualifications: [[Additional preferred]]
> Template - not professional advice. Verify all figures, clauses, and required disclosures against current law for the applicable jurisdiction. Invented inputs are tagged as [[merge fields]]. This is a sample agreement only.
Primary Sources (as of June 2026):
- A.R.S. § 23-1501 (Arizona at-will employment doctrine).
- A.R.S. § 23-1501.01 (enforceability of non-compete covenants; wage thresholds and reasonableness; effective 2023).
- A.R.S. § 23-350 et seq. (Arizona Wage Act; pay frequency).
- A.R.S. § 23-214 (E-Verify requirements for Arizona employers).
- A.R.S. § 23-493 (drug testing of employees).
- Fair Labor Standards Act (FLSA), 29 U.S.C. §§ 201 et seq. (exempt/non-exempt classification and overtime).
- Arizona Department of Economic Security / Labor Department guidance.
Employee and Employer should consult Arizona-licensed employment counsel for specific situations, especially regarding restrictive covenants and classification decisions. Laws and interpretations may change.
