The 10 Employment Contract Clauses to Check Before You Sign

The contract bars you from working for competitors after you leave. In California, Minnesota, North Dakota, and Oklahoma these are largely void; many other states limit them by salary or notice.

What to do: Check your state before signing. If it is enforceable, push to narrow the duration, geography, and definition of "competitor."

The contract claims ownership of things you create on your own time, on your own equipment, unrelated to the job.

What to do: In states like California (Labor Code §2870) that is unenforceable, ask for the statutory carve-out for personal, unrelated inventions in writing.

You give up the right to sue in court, and to join others in a class action, even for discrimination or wage claims.

What to do: Ask whether arbitration can be mutual and carve out statutory claims. Some states (e.g. CA) limit forced arbitration for certain claims.

You must give weeks of notice to leave, but the company can terminate you immediately, an unequal deal.

What to do: Ask for symmetrical notice, or severance if they terminate you without cause.

Your bonus is "at the company's sole discretion" with no metrics, meaning it can be zero and you have no recourse.

What to do: Push for objective, written targets tied to the bonus, or treat it as $0 when comparing the offer.

A long cliff means you get nothing if you leave early, and "bad leaver" language can strip vested equity on exit.

What to do: Confirm the vesting schedule and cliff in writing, and challenge any clause that forfeits already-vested shares.

If you leave within a set period, you must repay a signing bonus or relocation costs, sometimes the full pre-tax amount.

What to do: Clarify the repayment period and amount, and ask that it not apply if you are laid off or terminated without cause.

After leaving, you cannot recruit former colleagues or contact customers, sometimes for years, sometimes very broadly.

What to do: Narrow it to people you actually worked with, and a reasonable term (often 12 months).

The company can change your role, cut your pay, or relocate you at will, and the contract calls it acceptance if you keep working.

What to do: Ask that material changes to pay or location require your written consent, or trigger severance.

The confidentiality clause is so broad it could cover your general skills and knowledge, with no end date.

What to do: Confirm it excludes your general know-how and public information, and has a reasonable time limit.