Employment Agreement Adjustments in the US Internal

Can we adjust paid time off (PTO)?

There is no mandatory requirement for PTO or paid federal holidays in the U.S. Some states, cities or localities may mandate paid sick time. You can offer PTO and paid federal holidays, and this is documented in the offer letter. Certain states have legislation requiring year-end carry-over and pay-out of PTO upon separation.

Can we adjust working hours?

There is no mandatory limit for work hours under federal law in the U.S. Common practice is 40 hours per week.

Can we remove the notice period?

Notice periods are not applicable in the U.S., and they are not enforceable with respect to an employee providing a certain amount of notice. Notice periods can impact the at-will nature of employment in the U.S. and are not recommended.

Can we remove or increase the probationary period?

Since the general practice is an at-will relationship in the U.S., there is no mandatory probation period.

Can we add commissions, bonuses, or ad hoc payroll items?

There are no requirements for additional compensation in the U.S.; however, commission and bonus plans may be offered depending on the nature of the role and performance expectations.

How can we offer equity or stocks to our supported employees?

In the U.S., we offer you the option of issuing equity as either “non-employee” or “employee” grants (non-qualified). Two conditions apply:

• For clients that issue equity as “non-employee” grants, we do not facilitate withholding and payroll reporting unless the award is cash-settled
• For clients that issue equity as “employee grants,” we do facilitate withholding and payroll reporting

How can we offer equity without signing a direct agreement with our supported employee?

We require you to directly issue the grant notice (i.e., side agreement) to your supported employee. This side agreement should not include any language that indicates a direct employer or employee relationship between you and your supported employee.