When your perseverance and hard work pay off in the form of a job offer, it’s easy to get caught up in the moment and immediately say “yes.” Do you want the job? Of course you want the job! But before you accept any employment offer, it’s important to carefully review all the documents that are part of the employment agreement.
It’s a given that you evaluate the financial aspects of any job offer, including salary, benefits and PTO. If anything falls short of your expectations, you’ll likely negotiate to achieve a comprise that pleases you and your employer-to-be. Reviewing employment agreement documents is no different. You need to know the fine print of what you’re being asked to agree to, and if you come across something that raises a flag, you’ll want to see if you can negotiate a compromise.
Here are the key documents you should examine closely before officially accepting any job offer:
- The company’s employee handbook/manual – This document is basically the company’s bible for the employee-employer relationship. In addition to the standard guidelines, such as proper attire for casual Fridays, these handbooks can include easy-to-miss limitations on things like bonuses, salary, PTO and benefits, so it’s important to read them carefully. Typically, companies ask new employees to sign a document stating they have received and read the handbook, so woe to you if you don’t and later discover something you don’t like.
- Ethics code/code of conduct – Here’s where the company tells you how it expects you to behave on the job, and, not uncommonly, off the job as well. For example, the code may state that you’re expected to treat coworkers, supervisors and customers with respect during the course of your job, and it may also state that arrest for any reason is grounds for dismissal, even if you’re never charged with a crime.
- Confidentiality agreement – Signing this document basically means you agree that you won’t reveal any information the company deems confidential.
- Non-compete agreement – Once upon a time, only top managers or people in very specialized, competitive industries had to sign these, but they’re becoming more common. It’s important to understand just what limitations a non-compete places on your ability to get another job in your field if you leave your current employer. Reasonable non-competes will simply prohibit you from taking business with you or working for a direct competitor, but it’s not unheard of for an agreement to completely restrict an employee from working in his or her industry for a certain period of time.
- Intellectual property agreements – If, as part of your job, you could be called upon to invent something on company time or do research that leads to a patent application with your name on it, you’ll likely be asked to sign one of these before you begin work. Basically it says the company will own this intellectual property because you did the work that led to it on company time.
- Stock option/equity plans – Stock as part of an overall compensation package is common, and if it will be part of yours it’s important to read all the terms and conditions that come with those stock options. These documents will typically lay out the situations in which you’ll be able to exercise your options, when you can’t, and when you might have to give them back.
- Arbitration agreements – Just like any other type of arbitration agreement, one signed by an employee basically means you’ll first go through arbitration to attempt to resolve any legal dispute that arises between you and your employer. While this may seem reasonable on the surface, carefully read the fine print to ensure the agreement doesn’t make it too difficult for you to file a complaint and enter arbitration, or that it doesn’t require you to completely surrender your right to sue.
