Before signing an employment contract, it's crucial to understand its terms. These agreements can significantly impact your career and legal rights.
Key Contract Terms
At-Will Employment
Most employment in New York is "at-will," meaning either party can end the relationship at any time. However, contracts may modify this, providing job security or requiring cause for termination.
Non-Compete Agreements
Restrict your ability to work for competitors after leaving. In New York, these must be reasonable in scope, duration (typically 6-24 months), and geography. Recent legal changes have limited their enforceability for lower-wage workers.
Non-Solicitation Clauses
Prohibit you from soliciting the company's clients or employees after departure. Generally more enforceable than non-competes.
Confidentiality/NDA Provisions
Protect proprietary information and trade secrets. These survive employment and can have serious consequences if violated.
Intellectual Property Assignment
May require you to assign inventions or creative works to the employer, even those created on your own time. Understand what you're giving up.
Compensation Terms
- Base salary: Confirm amount and payment schedule
- Bonuses: Understand if guaranteed or discretionary, and conditions
- Equity: Vesting schedule, exercise periods, what happens upon termination
- Benefits: Health insurance, retirement, PTO, start dates for each
Termination Provisions
- Notice period: Required advance notice by either party
- Severance: Amount and conditions for receiving it
- For cause vs. without cause: Different consequences for each
- Garden leave: Paid period where you remain employed but don't work
Dispute Resolution
- Arbitration clauses: May require disputes to go to arbitration, not court
- Class action waivers: Prevent joining class action lawsuits
- Choice of law/venue: Which state's law applies and where disputes are heard
Before You Sign
Take time to review the contract carefully. Many terms are negotiable, especially for senior positions. Having an attorney review the agreement can identify unfavorable terms and strengthen your negotiating position.