What to Check in Your Employment Contract
These are the sections that most often cause surprises after people sign:
1. At-will or fixed term
Look for words like "at-will" or "with or without cause." In every US state except Montana, jobs are at-will by default unless a contract, offer letter, or union agreement says otherwise. A fixed term or "for cause" protection only exists if it is actually written in.
2. Pay, bonuses, and when they are paid
Check whether a bonus is "discretionary" or guaranteed once you hit targets, and whether you must still be employed on the payout date to receive it.
3. Termination, notice, and severance
See how much notice either side must give, what counts as being fired "for cause," and whether any severance is promised. In the US, severance is generally not required by law.
4. Who owns your work
Intellectual property clauses usually give your employer what you create as part of your job. Check whether the wording also reaches side projects; several states limit employers from claiming work you do on your own time and equipment that is unrelated to their business.
5. Restrictions after you leave
Look for non-compete, non-solicitation, and training repayment clauses. Several states ban or limit non-competes, and California and others now restrict many "stay-or-pay" training repayment terms.
Before You Sign
- Get any verbal promises, such as a guaranteed trial period or bonus, written into the offer or contract.
- Ask for time to review it; a day or two is a reasonable request.
- Ask for vague terms like "as needed" or "other duties" to be made specific.
- If there is a non-compete, check it separately with our Non-Compete Checker.
Related Guides
- Understanding Employment Contracts: Key Clauses to Watch For
- 4 Employment Contract Clauses to Check Before Signing
- Offer Letter vs. Employment Contract: What's the Difference?
- What Does "At-Will" Mean on a Job Offer Letter?
- Do You Have to Repay Training Costs if You Leave?
Frequently Asked Questions
Is a job offer letter a binding contract?
Partly. An offer letter can be binding as to what it promises, such as pay, but most US offer letters say employment is at-will, so they usually do not guarantee the job will start or continue for any set period.
Does my employer have to pay severance?
In the US, severance is generally not required by law. It exists only if your contract or company policy promises it, although large employers doing mass layoffs may have to give 60 days of notice under the federal WARN Act.
Can my employer claim my side projects?
It depends on the intellectual property clause and your state. Several states, including California, limit employers from claiming inventions you make on your own time, with your own equipment, that are unrelated to their business.
Can SimpleClause tell me if my contract is fair?
SimpleClause gives you a quick plain-English first read of what a clause says and what to look at more closely. It is not legal advice; for important decisions, talk to an employment lawyer in your state.