<PAGE>
 
                                                                   EXHIBIT 10.76

                             EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT is entered into as of the 21st day of January
1997, by and between Meadow Valley Corporation, a Nevada corporation (the 
"Employer"), and Gary W. Burnell (the "Employee").

     The Employer hereby employs the Employee on a full-time basis, and the 
Employee hereby accepts such full-time employment on the terms and conditions 
hereinafter set forth.

     1.   EMPLOYMENT. Employee is employed as the Chief Financial Officer,
          ----------
Treasurer and Vice President for the Employer. Employee shall perform all duties
as outlined herein and as may be assigned by the Employer and shall devote full
time, attention and loyalty to the affairs of the Employer. The duties of the
Employee shall specifically be:

          A)   To be responsible for all accounting, cash flow, and financial 
reporting functions of the Company.

          B)   To prepare annual operating plans, capital improvement programs, 
budgets and annual updates of five-year strategic plans.

          C)   To manage and supervise the staff and supervise all 
accounting-related functions.

          D)   To manage affairs with all banking and other financial 
institutions.

          E)   To represent the Employer to outside investors/stockholders, 
assist in providing investing information to brokers/dealers and other 
interested investors. To assist the CEO with presentation of investor 
information to the investing community.

          F)   To assist in evaluating and analyzing potential acquisition 
and/or investment opportunities of the Company. To serve as a source of analysis
for management and the board.

          G)   To assist in all administrative functions including insurance, 
bonding, legal, etc.

          H)   To perform or cause to be performed any other reasonable duties 
specifically assigned by the CEO and consistent with customary professionalism.

     2.   TERM.  Subject to the provisions of termination provided in paragraph 
          ----
12, the initial term of this Agreement shall commence on April 1, 1997 and 
terminate on March 31, 2002. This Agreement may be extended by the mutual 
written agreement of the Employee and the Employer.

     3.   COMPENSATION.  Employee shall receive a base salary of One Hundred 
          ------------
Ten Thousand Dollars ($110,000.00) per year, payable in accordance with the 
regular payroll practices of Employer, and subject to applicable deductions of 
withholding taxes and other customary employment taxes. Compensation is to begin
effective April 1, 1997, regardless of the date of execution of this Agreement. 
The Chief Executive Officer of Employee shall review Employee's salary at a 
minimum annually and may adjust Employee's salary upward to recognize 
improvement, achievement or
<PAGE>
 
expansion of Employee's responsibilities subject to approval of the Board 
Compensation Committee.

     Employee shall participate as a member of senior management in cash 
incentive plans as currently existing or as amended or adopted in the future by 
the Compensation Committee of Employer's Board of Directors. Cash bonus plans 
are subject to annual review and/or change as recommended by the Compensation 
Committee and approved by the Board of Directors.

     4.   OPTIONS TO ACQUIRE COMMON STOCK.  Upon written notice of acceptance of
          -------------------------------
an offer of full-time employment Employee shall be granted an option to purchase
80,000 shares of the Company's common stock under the terms of the Meadow Valley
Corporation 1994 Stock Option Plan. Future grants of stock options shall be
subject to the discretion of Meadow Valley Corporation's board of directors.

     5.   EMPLOYEE BENEFITS. Employer shall provide to Employee, and to the 
          -----------------
Employee's dependents, a comprehensive major medical, health, and dental 
insurance program comparable to the programs normally provided by other 
employers in the same industry and marketplace, and the Employer shall pay the 
cost of the Employee's portion of the premium. Should, at any time, the Employee
opt to maintain a personal major medical and health insurance policy for 
himself and for his dependents and not participate in the Employer's group plan,
then Employer shall reimburse Employee the lesser of the amount Employee pays 
for said personal policy, as evidenced by adequate documentation, or what 
Employer would otherwise be paying were Employee participating in the Employer's
group plan. Should the Employee opt to maintain his own coverage, neither he nor
his dependents shall be precluded from later participating in the Employer's 
group plan so long as they otherwise qualify for enrollment.

     At Employer's cost, Employer will by April 1, 1997, obtain a life insurance
policy covering Employee, with at least $250,000 of death benefits being
payable, in a manner that is free of income tax, to Employee's estate or other
beneficiaries designated by Employee.

     Employer agrees to provide Employee with an automobile for business-related
use. In addition to the cost of the vehicle itself, Employer shall pay, directly
or by reimbursement to Employee, for all maintenance, fuel, repairs, insurance, 
operating and other costs incidental thereto.

     Employer shall pay for, or reimburse Employee for, dues for his membership 
in Financial Executives Institute, the American Institute of CPAs and one state 
society of CPAs, as well as any other professional associations that are 
perceived as beneficial to Employer. Additionally, Employer will provide
reasonable time for and pay the registration and related expense for the
Employee to participate in a sufficient number of hours of continuing education
course (currently thirty hours per year average) to maintain his membership in
the American Institute of CPAs.

     So long as it is within the guidelines of the respective plan, Employee 
shall be given the opportunity to participate in Employer's 401(k) and any other
plans made available to other members of executive management.
<PAGE>

     Employee shall be entitled to receive all other employee benefits for
senior management personnel upon the terms and conditions then in effect.

     6.   MOVING EXPENSES AND SUBSISTENCE.  Employer shall pay for all moving 
          -------------------------------
costs of reasonable and normal household effects from Tulsa to the Phoenix area,
including up to six months storage of such household effects in Tulsa or
Phoenix, whichever is more economical and practical, while Employee and his
spouse obtain a permanent residence in the Phoenix area. Employee shall obtain a
minimum of two moving and storage quotes from reputable movers and Employer
shall pay the most competitive rate. 

     Employer shall provide Employee a subsistence allowance of One Thousand
Dollars ($1000.00) per month for the lesser of nine months from April 1, 1997 or
until such time as the relocation of Employee and his spouse to the Phoenix area
is complete. In addition, costs for one round-trip airline ticket per week
between Tulsa and Phoenix will be reimbursed by Employer to Employee during the
same nine-month period, or less if relocation to the Phoenix area is completed
earlier. Such tickets can be used either by Employee or by his spouse.

     7.   HOLIDAYS AND VACATION.
          ---------------------

          A)   Employee shall be paid for the following seven (7) holidays: New
     Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
     the day after Thanksgiving, and Christmas Day and all other holidays for
     Employees of the Company as approved by the Chief Executive Officer or
     Board of Directors.

          B)   Employee is entitled to four weeks vacation during the first year
     of employment and for each year thereafter. Unused vacation in any given
     year shall accrue to following years up to a maximum of eight weeks in any
     one year.

     8.   RESPONSIBILITIES OF EMPLOYEE. The Employee shall devote such 
          ----------------------------
reasonable time as is necessary or is deemed reasonably necessary by the
Employer to carry out all required duties and will devote full time to the
Employer during normal business hours. The Employee shall at all times
faithfully, with diligence and to the Employee's best good faith ability,
experience and talents, perform all the duties that may be required pursuant to
the express terms hereof to the reasonable satisfaction of the Employer, in
accordance with customary professional standards.

     9.   WORKING FACILITIES. The Employee shall be furnished with all 
          ------------------
facilities and services suitable to Employee's position and adequate for the 
performance of Employee's duties.

     10.  EXPENSES.  The Employee is authorized to incur reasonable expenses for
          --------
promoting business of the Employer, including expenses for entertainment, travel
and similar items. The Employer shall reimburse the Employee for all such 
expenses on the presentation by the Employee of itemized and adequately 
documented accounts of such expenditures.


<PAGE>
 
     11.  DISABILITY.  If unable to perform duties under the terms of this 
          ----------
Agreement by reason of illness or incapacity for a period of four weeks, 
Employee shall, commencing at the end of such four week period, be entitled to 
receive Employee's compensation hereunder for a period of up to and including a 
maximum of one year or until he is no longer disabled, whichever occurs first. 
Thereafter, Employee, or his designated beneficiary, shall be provided a 
disability insurance policy, at no cost to Employee, that provides for monthly 
payments at the rate of at least sixty percent (60%) of the Employee's base 
salary at the time the disability occurred, such payments to continue until 
Employee reaches 65 years old or is no longer disabled whichever occurs first.

     12.  TERMINATION.  This Employment Agreement may be terminated under the 
          -----------
following circumstances:

          A)   WITHOUT CAUSE. Employer may terminate this Agreement at any time
               -------------
     upon thirty (30) days written notice to Employee, but Employer shall be
     obligated to pay to Employee compensation in a lump sum for the balance of
     the term of this Agreement within 30 days of termination, unless Employee
     agrees to other payment terms.

          B)   VOLUNTARY TERMINATION BY EMPLOYEE WITHOUT CAUSE.  Employee may
               -----------------------------------------------
     terminate this Agreement at any time upon thirty (30) days written notice
     to Employer and Employer shall be obligated, in that event, to pay Employee
     compensation up to the date of the termination only. All accrued but unpaid
     compensation and Employee benefits shall be paid in cash within 30 days of
     termination, unless Employee agrees to other payment terms.

          C)   TERMINATION BY EMPLOYER FOR REASONABLE CAUSE.  The Employer may 
               --------------------------------------------     
     terminate this Agreement for reasonable cause upon the unanimous vote of
     the Board of Directors and by thirty (30) days written notice to the
     Employee and Employer shall be obligated, in that event, to pay Employee
     compensation up to the date of termination only. For purposes hereof,
     "cause" shall be defined as meaning (i) such conduct by the Employee which
     constitutes material breach of this Agreement which is not cured within
     ninety (90) days of written notice to the Employee of said alleged breach
     or (ii) a material failure to competently perform Employee's duties as
     stated in paragraph 1 in accordance with applicable professional standards
     as stated in paragraph 1 and 8 hereof provided that Employer has previously
     given Employee written notice and a reasonable opportunity to remedy such
     failure and such failure has a materially adverse effect on the business or
     financial condition of Employer or (iii) material breach of Employee's
     fiduciary duty and such breach has a material adverse effect on the
     business or financial condition of Employer or (iv) egregiously improper or
     illegal conduct of the Employee which, based upon a unanimous good faith
     determination of the Board of Directors of the Employer, has a material
     adverse affect on Employer.

<PAGE>
 
          D)   TERMINATION BY EMPLOYEE FOR REASONABLE CAUSE.  Employee may 
               --------------------------------------------
     terminate this Agreement for cause. In such event, Employer shall be
     obligated to pay Employee compensation in lump sum for the balance of the
     term of this Agreement within 30 days of termination or as Employee shall
     agree, plus damages suffered and expenses incurred by reason thereof. For
     this purpose "cause" shall mean (i) a material breach of this Agreement by
     Employer or (ii) failure of Employer to pay any amount owed Employee
     hereunder at the time and in the amount due or (iii) failure of Employer to
     follow applicable law, especially with respect to SEC filings and
     compliance over the objection of Employee or contrary to the reasonable
     advice of Employee or (iv) egregiously improper conduct with respect to
     dealing with Employee or in a manner which brings discredit to Employee.

     13.  CONFIDENTIALITY.  Employee agrees not to disclose any confidential, 
          ---------------
proprietary competitively sensitive information to persons who are not
employees, directors, lenders, bonding agents, insurance companies or advisors
of the Employer, except as required by law, without prior consent of the
Employer, provided however, any disclosure involving this paragraph shall not
result in a breach of this Agreement unless the disclosure has a materially
adverse effect on the Employer.

     14.  INDEMNIFICATION.  Employer and Meadow Valley Contractors, Inc. shall 
          ---------------
provide Employee with an Officer Indemnification Agreement in the form attached 
hereto.

     15.  NOTICES.  All notices, demands, and communications given under this 
          -------
Agreement ("Notice") shall be in writing and delivered personally or sent by 
registered or certified mail, return receipt requested, in the United States 
mail, postage prepaid, addressed as follows:

          If to Employer:
                  Meadow Valley Corporation
                  P.O. Box 60726
                  Phoenix, AZ 85082-0726  

          If to Employee:
                  Gary W. Burnell
                  8205 S. Marion Avenue
                  Tulsa, OK 74137

or at such other address as a party may from time to time designate by Notice 
hereunder. Notice shall be effective upon delivery in person, or if mailed, at 
midnight on the third business day after the date of mailing.

     16.  ASSIGNMENT OF AGREEMENT.  Neither party may assign or otherwise 
          -----------------------
transfer this Agreement or any of its rights or obligations hereunder without 
the  
<PAGE>

prior written consent to such assignment or transfer by the other party 
hereto; and all the provisions of this Agreement shall be binding upon the 
respective employees, successors, heirs and assigns of the parties; provided, 
however, the benefits payable to Employee hereunder in the event of disability 
or death or incapacity are payable to Employee's spouse or personal 
representative.

     17.  SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS.  This Agreement
          -----------------------------------------------------
and the representations, warranties, covenants and other agreements (however 
characterized or described) by both parties and contained herein or made 
pursuant to the provisions hereof shall survive the execution and delivery of 
this Agreement.

     18.  FURTHER INSTRUMENTS.  The parties shall execute and deliver any and 
          -------------------
all such other instruments in reasonable mutually acceptable form and substance 
and shall take any and all such other actions as may be reasonably necessary to 
carry the intent of the Agreement into full force and effect.

     19.  SEVERABILITY.  If any provision of this Agreement shall be held, 
          ------------
declared or pronounced void, voidable, invalid, unenforceable or inoperative for
any reason by any court of competent jurisdiction, governmental authority or
otherwise, such holding, declaration or pronouncement shall not affect adversely
any other provision of this Agreement, which shall otherwise remain in full
force and effect and be enforced in accordance with its terms, and the effect of
such holding, declaration or pronouncement shall be limited to the territory of
jurisdiction in which made.

     20.  WAIVER.  All the rights and remedies of either party under this 
          ------
Agreement are cumulative and not exclusive of any other rights and remedies 
provided by law. No delay or failure on the part of either party in the exercise
of any right or remedy arising from a breach of this Agreement shall operate as 
a waiver of any subsequent right or remedy arising from a subsequent breach of 
this Agreement. The consent of any party where required hereunder to any act or 
occurrence shall not be deemed to be a consent to any other act or occurrence.

     21.  GENERAL PROVISIONS.  This Agreement shall be construed and enforced in
          ------------------
accordance with, and governed by, the laws of the state of Arizona. Except as 
otherwise expressly stated herein, time is of the essence in performing under 
this Agreement. This Agreement embodies the entire agreement and understanding 
between the parties and supersedes all prior agreements and understandings 
relating to the subject matter of this Agreement as it relates to the parties' 
duties and obligations from and after April 1, 1997, and this Agreement may not 
be modified or amended or any term or provision hereof waived or discharged 
except in writing signed by the party against whom such amendment, modification,
waiver or discharge is sought to be enforced. The headings of this Agreement 
are for convenience in reference only and shall not limit or otherwise affect 
the meaning thereof. This Agreement may be executed in any number of 
<PAGE>
 
counterparts, each of which shall be deemed an original but all of which taken
together shall constitute one and the same instrument.

     22.  SPECIAL RIGHT OF EMPLOYEE UNDER CERTAIN CIRCUMSTANCES. During the term
          -----------------------------------------------------
of this Agreement, if (i) Employer is involved in a merger, consolidation or 
other business combination in which Employer is not the surviving and 
controlling entity; or (ii) all or substantially all the assets of Employer or 
its principal subsidiary are sold; or (iii) in the event Employee is required to
relocate outside the Pheonix metropolitan area in a manner not mutually
acceptable to Employee and Employer, then Employee shall have the following
rights:

     A)   To terminate this Agreement with 30 days prior notice, in which event 
Employer shall pay Employee as if there were a termination without cause by the 
Employer; and

     B)   All options granted shall, to the extent not specifically prohibited 
by the stock option plan then in effect, vest immediately and be exercisable 
within one year of the occurring of one of the events set forth in (i), (ii) or 
(iii) above.

IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year
first above written.

                                   Meadow Valley Corporation


/s/ Gary W. Burnell                By /s/ Bradley E. Larson
-----------------------------        ---------------------------------
Employee                             President/CEO
<PAGE>
 
                         MEADOW VALLEY CORPORATION AND
                        MEADOW VALLEY CONTRACTORS, INC.
                  OFFICER/DIRECTOR INDEMNIFICATION AGREEMENT
                  ------------------------------------------

     THIS AGREEMENT ("Agreement") is entered into and effective this 1st day of
April, 1997, by and between Meadow Valley Corporation and Meadow Valley
Contractors, Inc., Nevada corporations ("Corporation"), and Gary W. Burnell
("Indemnified Party").

     WHEREAS, the Board of Directors has determined that it is in the best 
interest of the Corporation and its shareholders to agree to indemnify 
Indemnified Party (who is a Director and/or Officer of the Corporation) from and
against certain liabilities for actions taken by him during the performance of 
his tasks for the Corporation.

     NOW, THEREFORE, in consideration of the premises and for other good and 
valuable consideration, the receipt, adequacy and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

     1.   INDEMNIFICATION.  The Corporation hereby agrees to indemnify and hold 
          ---------------
harmless Indemnified Party to the maximum extent possible under all applicable
laws against any and all claims, demands, debts, duties, liabilities, judgments,
fines and amounts paid in settlement and expenses (including attorneys' fees and
expenses) actually and reasonably incurred by Indemnified Party in connection
with the investigation, defense, negotiation and settlement of any such claim or
any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (including an action by or in the
right of the Corporation) to which Indemnified Party is or becomes a party, or
is threatened to be made a party, by reason of the fact that Indemnified Party
is an officer or a director of the Corporation or any of its subsidiaries.

     2.   LIMITATIONS ON INDEMNITY.  No indemnity pursuant to this Agreement 
          ------------------------
shall be made by the Corporation:

     (a)  For the amount of such losses for which the Indemnified Party is
          indemnified pursuant to any insurance purchased and maintained by the
          Corporation; or
     (b)  In respect to remuneration paid to Indemnified Party if it shall be
          determined by a final judgment or other final adjudication that such
          remuneration was in violation of law; or
     (c)  On account of any suit in which judgement is rendered against
          Indemnified Party for an accounting of profits made (i) for an
          improper personal profit without full and fair disclosure to the
          Corporation of all material conflicts of interest and not approved
          thereof by a majority of the disinterested members of the Board of
          Directors of the Corporation; or (ii) from the purchase or sale by
          Indemnified Party of securities of the Corporation pursuant to the
          provisions of Section 16(b) of the Securities Exchange Act


<PAGE>
 
          of 1934 and amendments thereto or similar provisions of any federal, 
          state or local law; or

     (d)  On account of Indemnified Party's conduct which is finally determined
          to have been knowingly fraudulent, deliberately dishonest or willfully
          in violation of applicable law for which the corporation suffered
          actual financial damages; or

     (e)  If a final decision by a court having jurisdiction in the matter shall
          determine that such indemnification is not lawful.

     3.   CONTINUATION OF INDEMNITY. All agreements and obligations of the 
          -------------------------
Corporation contained herein shall continue during the period Indemnified Party 
is an officer or director of the Corporation or a subsidiary and thereafter so 
long as Indemnified Party shall be subject to any possible claim or threatened, 
pending or completed action, suit or proceeding, whether civil, criminal or 
investigative, by reason of the fact that Indemnified Party was an officer or a 
director of the Corporation or any subsidiary.

     4.   NOTIFICATION AND DEFENSE OF CLAIM. Within 30 days after receipt by 
          ---------------------------------
Indemnified Party of notice of any claim or any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or 
investigative, in which Indemnified Party has a right to Indemnification 
hereunder, Indemnified Party will notify the Corporation of the commencement 
thereof. With respect to any such action, suit or proceeding as to which 
Indemnified Party notifies the Corporation of the commencement thereof:

     (a)  The Corporation will be entitled to participate therein at its own 
          expense; and 

     (b)  Except as otherwise provided below, to the extent that it may wish,
          the Corporation jointly with any other indemnifying party will be
          entitled to assume the defense thereof, with counsel satisfactory to
          Indemnify Party. After notice from the Corporation to Indemnified
          Party of its election to assume the defense thereof, the Corporation
          will not be liable to Indemnified Party under this Agreement for any
          legal or other expenses subsequently incurred by Indemnified Party in
          connection with the defense thereof other than reasonable costs of
          investigation or as otherwise provided below. Indemnified Party shall
          have the right to employ counsel in such action, suit or proceeding,
          but the fees and expenses of such counsel incurred after notice from
          the Corporation of its assumption of the defense thereof shall be at
          the expense of Indemnified Party, unless (i) the employment of counsel
          by Indemnified Party has been authorized by the Corporation, (ii)
          Indemnified Party shall have reasonably concluded that there may be a
          conflict of interest between the Corporation and Indemnified Party in
          the conduct of the defense of such action, (iii) the Corporation shall
          not in fact have employed counsel to assume the defense of such
          action, in each of which cases the fees and expenses of counsel shall
          be at the expense of the Corporation, or (iv) unless the Indemnified
<PAGE>
 
          Party reasonably and in good faith asserts defenses and theories of 
          defense not asserted by the Corporation. The Corporation shall not be
          entitled to assume the defense of any action, suit or proceeding
          brought by or on behalf of the Corporation or as to which Indemnified
          Party shall have made the conclusion provided for in (ii) or (iv)
          above.
     
     (c)  The Corporation shall not be liable to indemnify Indemnified Party
          under this Agreement for any amounts paid in settlement of any action
          or claim effected without the Corporation's written consent. The
          Corporation shall not settle any action or claim in any manner which
          would impose any penalty or limitation on Indemnified Party without
          Indemnified Party's written consent. Neither the Corporation or
          Indemnified Party will unreasonably withhold their consent to any
          proposed settlement.

     5.   REPAYMENT OF EXPENSES. Indemnified Party agrees that Indemnified Party
          ---------------------
will reimburse the Corporation for all reasonable expenses paid by the 
Corporation in defending any civil or criminal action, suit or proceeding 
against Indemnified Party in the event and only to the extent that Indemnified 
Party is finally determined that Indemnified Party is not entitled to be 
indemnified by the Corporation for such expenses under the Corporation's charter
or bylaws, this Agreement or under applicable law.

     6.   ENFORCEMENT.
          -----------

     (a)  The Corporation expressly confirms and agrees that it has entered into
          this Agreement and assumed the obligations imposed on the Corporation
          hereby in order to induce Indemnified Party to serve as an officer
          and/or director of the Corporation or any subsidiary thereof, and
          acknowledges that Indemnified Party is relying upon this Agreement as
          part of the consideration for so acting.

     (b)  In the event Indemnified Party is required to bring any action to
          enforce rights or to collect moneys due under this Agreement and is
          successful in such action, the Corporation shall reimburse Indemnified
          Party for all of Indemnified Party's reasonable attorneys' and other
          fees and expenses in bringing and pursuing such action.

     7.   SEVERABILITY. Each of the provisions of this Agreement is a separate 
          ------------
and distinct agreement and independent of the others, so that if any provision 
hereof shall be held to be invalid or unenforceable for any reason, such 
invalidity or unenforceability shall not affect the validity or enforceability 
of the other provisions hereof.

     8.   GOVERNING LAW; BINDING EFFECT; AMENDMENT AND TERMINATION.
          --------------------------------------------------------

     (a)  This Agreement shall be interpreted and enforced in accordance with 
          the laws of the State of Arizona.

     (b)  This Agreement shall be binding upon Indemnified Party and upon the
          Corporation, its successors and assigns, and shall inure to the
          benefit of
<PAGE>
 
          Indemnified Party, his heirs, personal representatives and assigns and
          to the benefit of the Corporation, its successors and assigns.
     (c)  No amendment, modification, termination or change of this Agreement 
          shall be effective unless it is signed by both parties hereto.

     9.   ADDITIONAL RIGHTS.  This Agreement is in addition to, and not in lieu 
          -----------------
of, any other right to indemnification under the Corporation's corporate 
charter, bylaws, insurance contracts or otherwise at law or in equity.

     IN WITNESS WHEREOF, the parties were have executed this Agreement on and as
of the day and year first above written.

                              MEADOW VALLEY CORPORATION AND
                              MEADOW VALLEY CONTRACTORS, INC.


                              By: /s/ Bradley E. Larson 
                                 -----------------------------------------------
                              Bradley E. Larson, President and Chief Executive 
                              Officer  

                              Indemnified Party:


                              /s/ Gary W. Burnell  
                              --------------------------------------------------
                              Gary W. Burnell