By: Stephen G. Piccininni, Esq., November 10, 2025
Hiring or accepting a new role should feel clear, not risky. A well-drafted employment contract sets expectations, reduces disputes, and protects both sides.
At-a-Glance
• Spell out job title, duties, reporting line, and whether the job is at-will or for a fixed term.
• Detail pay, bonuses/commissions, and when money is earned and paid.
• Align time-off and leave with New Jersey earned sick leave.
• Use confidentiality and intellectual-property terms that fit the role.
• Right-size any post-employment limits and choose a fair dispute process.
What New Jersey law says
• At-will vs. term. Employment is usually at-will unless a contract says otherwise; be explicit about duration, renewal, and any notice or severance.
• Pay transparency. Most employers must include salary ranges and benefits in job postings; make sure offers and contracts match postings (New Jersey Pay and Benefits Transparency Law, N.J.S.A. 34:6B-23; effective June 1, 2025).
• Earned Sick Leave. Most employees accrue up to 40 hours per year; your policy and contract should reflect that floor (New Jersey Earned Sick Leave Law, N.J.S.A. 34:11D-1 et seq.).
• Confidentiality limits. You cannot use nondisclosure language to prevent employees from discussing discrimination, retaliation, or harassment claims (New Jersey Law Against Discrimination (LAD), N.J.S.A. 10:5-12.8).
• Arbitration. If you choose arbitration, it must be clear, mutual, and consistent with the New Jersey Arbitration Act (NJAA), N.J.S.A. 2A:23B-1 et seq.
• Non-competes. The federal attempt to ban non-competes is not in effect; in New Jersey, courts still apply a reasonableness test under state case law.
The essential clauses (and why they matter)
1. Position & duties. Attach a short description and name a supervisor to avoid “that’s not my job” disputes.
2. At-will or term. If term, include renewal and early-termination rules; if at-will, say so plainly.
3. Compensation. State base pay, overtime classification, pay periods, commission/bonus formulas, and when amounts are earned and forfeited.
4. Benefits & leave. List major benefits and confirm compliance with New Jersey earned sick leave.
5. Confidentiality. Define confidential information, carve out legally protected disclosures, and align with LAD.
6. Intellectual property. Clarify work-for-hire and assignment of inventions created for the employer; if you want a personal-inventions carve-out, say so explicitly (New Jersey does not have a default carve-out statute).
7. Restrictive covenants. Prefer targeted non-solicitation over broad non-competes; include a “blue-pencil” clause so a court can narrow, not void.
8. Conflict-of-interest & outside work. Explain when side gigs are allowed and how to request approval.
9. Dispute resolution. If using arbitration, specify rules, venue, discovery, and fee allocation, and acknowledge the jury-trial waiver consistent with the NJAA.
10. Termination & transition. Define “cause,” any cure period, garden leave or severance if offered, return-of-property, and cooperation obligations.
Common pitfalls we see
• Vague commission plans without timing, clawback, or proration rules.
• Overbroad nondisclosure or non-disparagement language that conflicts with the LAD.
• Non-competes that sweep too wide in time, territory, or scope.
• Arbitration clauses that omit governing law, forum, or cost-sharing.
• Handbooks and postings that don’t match the contract (including pay transparency).
What to bring us during a Free Consultation (if you have them)
• The offer letter, contract draft, and any handbook or policy acknowledgments.
• Prior agreements (non-compete, confidentiality, IP, or equity plans).
• A sample commission/bonus calculation and sales or performance metrics.
• Your practical concerns: remote work, flexibility, notice period, or severance goals.
How we help
Semeraro & Fahrney drafts, reviews, and negotiates employment agreements for employers and professionals across New Jersey, balancing compliance with real-world business needs.
Before you sign, or onboard your next hire, get a focused contract review.
Request a free consultation today:
Email: info@semerarolaw.com
Phone: (973) 988-5070
Attorney Advertising. For informational purposes only; not legal advice. Reading this article does not create an attorney-client relationship. Past results do not guarantee a similar outcome.
Written by Semeraro & Fahrney, LLC, Wayne, NJ. Last updated September 2025.
