Employment Contract Review: Got a Job Offer? Read This Before You Sign.

Understand every clause of your employment contract in plain English, tuned to your state’s laws.

Quick answer

What should I check in an employment contract before signing?

Check five things first: whether a non-compete is enforceable in your state and how far it reaches; whether the IP assignment claims work you do on your own time; whether disputes go to mandatory arbitration with a class-action waiver; what you are owed on termination, including notice and severance; and whether bonus, commission and equity terms are discretionary or guaranteed.

Who this employment review is for

  • Anyone with a new job offer or offer letter to sign
  • Employees asked to sign a new agreement, handbook acknowledgement or restrictive covenant mid-job
  • Senior hires negotiating equity, bonus and severance
  • Anyone leaving a job who wants to know what their existing contract restricts

What's at stake

The Employment clauses most people miss, and what they can cost you.

A non-compete could lock you out of your career

They’re void in some states (like California) and overbroad in many others. We tell you whether yours is even enforceable where you work, before you sign away your next job.

Your employer may own your side projects

Overbroad IP assignment can claim inventions you make on personal time. We check it against your state’s protections (e.g. California Labor Code §2870).

You could be giving up your right to sue

Mandatory arbitration and class-action waivers are easy to miss. We flag them and explain exactly what you’d be waiving.

What the employment review checks

  • At-will status and asymmetric notice periods
  • Non-compete enforceability in your state
  • IP assignment & California Labor Code §2870 protections
  • Mandatory arbitration & class-action waivers
  • Equity vesting cliffs and "good leaver" traps
  • Discretionary bonus and salary-modification rights

What you get

  • A risk score and a severity rating for every flagged clause
  • Non-compete enforceability checked against your state
  • Plain-English explanation of arbitration, IP and termination terms
  • A redline DOCX and a negotiation email you can send

How to review an employment contract

7 red flags in an employment contract

What the review looks for first, and why each one matters.

  • A non-compete longer than a year, or with no geographic limit

    Broad restraints are the ones courts most often narrow or refuse, and the ones most likely to stop your next job while that is argued.

  • IP assignment covering anything you create “during employment”

    Without a carve-out for your own time and resources, it can reach side projects unrelated to the job.

  • Mandatory arbitration plus a class-action waiver

    Together they remove a jury trial and the ability to join a group claim.

  • You owe weeks of notice; the employer owes none

    Asymmetric notice leaves you bound while the employer stays free to end things at once.

  • Bonus or commission “at the company’s sole discretion”

    A discretionary bonus is not a promise, however it was described in the interview.

  • Equity that forfeits on any termination, even without cause

    Vested and unvested terms decide whether years of work leave with you.

  • A clawback of signing bonus or relocation costs with no time limit

    Repayment obligations should reduce over time and not apply if you are let go.

Employment terms explained

At-will employment
Either side may end the employment at any time for any lawful reason, unless the contract says otherwise.
Non-compete
A promise not to work for a competitor or start a competing business for a period after you leave.
Non-solicitation
A promise not to approach the employer’s clients or staff after you leave, narrower than a non-compete.
Invention assignment
A clause transferring to the employer the rights in what you create; its reach decides whether side projects are yours.
Mandatory arbitration
An agreement to resolve disputes privately before an arbitrator rather than in court.
Garden leave
A notice period during which you are paid but kept away from work, often used instead of or alongside a non-compete.
Clawback
A duty to repay money already received, such as a signing bonus, if you leave within a set period.

Why review it with ClauseAudit

One plan covers all eleven analyzers: Employment, Freelance, NDA, SaaS, Lease, Commercial Lease, Equipment & Vendor, MCA & Business Loan, Franchise, Business Purchase and Operating Agreement. Use your credits on any contract type.

Employment contract FAQs

What should I check in an employment contract before signing?

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Check five things first: whether a non-compete is enforceable in your state and how far it reaches; whether the IP assignment claims work you do on your own time; whether disputes go to mandatory arbitration with a class-action waiver; what you are owed on termination, including notice and severance; and whether bonus, commission and equity terms are discretionary or guaranteed.

Is my non-compete actually enforceable?

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It depends heavily on your state. Non-competes are void for most employees in California, North Dakota, Oklahoma, Minnesota, and Wyoming (for most workers, on agreements signed since July 1, 2025), and several other states sharply limit them (by salary, duration, or industry). Elsewhere, courts often scrutinize anything broader than 1–2 years or nationwide in scope. ClauseAudit checks yours against the rules in your state.

Can my employer own things I invent on my own time?

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Overbroad IP-assignment clauses try to. But several states protect inventions you create on your own time, without company resources, that don’t relate to the employer’s business, California Labor Code §2870 is the best-known example. We flag assignment language that reaches beyond what your state allows.

What does "at-will" employment actually mean?

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At-will means either side can end the job at any time, for almost any reason. Watch for asymmetric notice periods (you owe weeks, they owe none) and clauses that strip protections you would otherwise have.

Should I worry about a mandatory arbitration clause?

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Arbitration plus a class-action waiver can quietly remove your right to a jury trial and to join a group claim. It’s legal in many cases but worth understanding before you sign, we flag it and explain exactly what you’d be giving up.

Is this a substitute for an employment lawyer?

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No. ClauseAudit gives you a fast, plain-English risk read so you understand the offer and know what to negotiate, but it is not legal advice. For a high-stakes role or a dispute, take the report to a qualified employment attorney.

Can I negotiate an employment contract after receiving the offer?

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Usually yes, and the offer stage is when you have the most leverage. The terms most often changed are non-compete scope, notice periods, severance and the IP carve-out for personal projects. The report’s negotiation email asks for those changes in order of importance.

What documents should I upload with the offer letter?

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Anything the offer incorporates by reference: a separate confidentiality and invention assignment agreement, the equity or bonus plan, and the parts of the handbook it says are binding. A clause in a document you did not upload cannot be reviewed.

What should I look for in an employment contract?

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Start with pay, bonus criteria and equity vesting, then the restrictive terms: non-compete, non-solicit and confidentiality. Check whether employment is at-will, how much notice each side must give, what severance applies, who owns inventions you make on your own time, and whether disputes go to mandatory arbitration. ClauseAudit's automated review checks each of these against your state's rules and explains what is negotiable.

Check your employment contract before you sign

Upload it, choose your options and get the report. One plan covers all eleven analyzers.

Review my job offer

Written and maintained by the ClauseAudit team. Last reviewed . General information, not legal advice, and not reviewed by an attorney. For a high-stakes agreement, consult a qualified attorney.

Employment guides

Plain-English explainers on the clauses this analyzer checks.