Below is suggested language to help attorneys of CCPIA-members draft an employment agreement.  An employment agreement should be used by members when hiring other inspectors.

The language contains a non-compete clause.  Enforceability of non-compete agreements varies from state/province to state/province, and members are encouraged to seek advice from their own local council.  If the property inspection business (“Employer”) is an LLC or a corporation, make sure that the LLC or the corporation (not the owner) is listed as the “Employer” on the document.  This language assumes that the employee is going to be a true employee and not just an independent contractor.

This language also assumes that the Employer will be providing formal training or on-the-job training.  In some states, non-compete clauses are not enforceable unless the Employer has provided training or some other benefit to the Employee such that it would be unfair to allow the Employee to then directly compete with the Employer.  The Employer should keep accurate wage and work records, as well as document any formal training or on-the-job training provided.  The Employer should also include in the agreement a description of any benefits (vacation time, health care, etc.) being provided to the employee.

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