Read Before You Sign
Getting a job offer is exciting. But the employment contract that comes with it deserves careful attention. Many employees sign without reading — and later discover clauses that limit their career for years.
Here are the six most consequential clauses to understand before you accept.
1. Non-Compete Agreements
A non-compete clause prevents you from working for competitors — or starting a competing business — for a period after you leave the company. Overly broad non-competes can effectively lock you out of your industry.
Watch for: Geographic scope (is it nationwide?), duration (anything over 12 months is aggressive), and definition of "competitor" (broad enough to cover most of your field?).
Note: Non-compete enforceability varies significantly by state. Some states (like California) don't enforce them at all.
2. Intellectual Property Assignment
Most employment contracts include a clause assigning all work-related IP to the employer. That's expected. But some go further — claiming ownership of anything you create during your employment, even on your own time with your own equipment.
Look for: Language like "work made for hire" and whether there's a carve-out for personal projects unrelated to the company's business.
3. Non-Solicitation Agreements
Non-solicitation clauses prevent you from recruiting your former colleagues or contacting your former clients after you leave. A reasonable non-solicitation agreement is 6-12 months. Clauses that last 2+ years or apply to clients you had before joining the company are overreaches.
4. Mandatory Arbitration
Arbitration clauses require you to resolve disputes through private arbitration rather than in court. This means:
- You can't sue in court
- You often can't join a class action
- Proceedings are private
- Arbitrators are often repeat players with relationships to employers
This is a significant waiver of your legal rights. Understand what you're giving up.
5. At-Will Employment Provisions
"At-will" employment means you can be terminated at any time, for any reason, with no notice. This is standard in the US — but be aware of it. Some contracts add just cause requirements or severance provisions that offer more protection.
6. Compensation and Bonus Language
Review not just your salary but:
- When bonuses are paid (and whether you must be employed on the payment date)
- How equity vests (and what happens if you're let go before vesting)
- Whether commissions have a clawback provision
- What benefits are discretionary vs. guaranteed
Get Your Offer Letter Reviewed
Paste your employment contract into our Employment Contract Analyzer and get a clear breakdown of every significant clause — including any red flags — before you sign.
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