Employees often have the same concerns when reviewing the legal terms of an employment contract. Understanding these concerns early and help advoid future disputes and ensure both parties reach a fair and balanced agreement.
This article outlines the top concerns employees have about their employment contracts, based on real project data from ContractsCounsel, when connecting with an experienced employment lawyer for contract review and negotiation services.
Note: this analysis is based on anonymized data from thousands of employment contract reviews posted on ContractsCounsel.
| Concern | Why It Matters | How Lawyers Help |
| Non-compete & Non-solicitation | These clauses can limit future jobs or client work after leaving. | Lawyers review scope, duration, and geography for enforceability. |
| Termination & Severance | Employees want clarity on when they can be terminated and if severance applies. | Lawyers explain termination rights and advise on fair severance terms. |
| Compensation & Bonuses | Confusing bonus or commission terms can cause pay disputes. | Lawyers clarify how pay, bonuses, and reimbursements are calculated. |
| Scope of Work & Side Projects | Exclusivity clauses may restrict outside work or personal projects. | Lawyers check what outside work is allowed and adjust terms if needed. |
| Equity & Vesting | Employees need to understand equity terms and what happens if they leave. | Lawyers review vesting, repurchase rights, and explain implications. |
| Intellectual Property & Confidentiality | Broad IP or confidentiality clauses can restrict future use of work. | Lawyers limit overreach and balance confidentiality with fairness. |
| Enforceability Across States | Employment laws vary, affecting enforceability of key clauses. | Lawyers confirm governing law and assess enforceability by state. |
Non-compete and Non-solicitation Clauses
Concern 1: Employees express concern about non-compete and non-solicitation clauses, since they restrict their ability to work in the future after leaving a job. Non-compete clauses can limit an employee's ability to work for another business (typically a competitor) and non-solicitation clauses can restrict their ability to solicit clients or colleagues.
Overall, these restrictions can limit future career opportunities so they need to be reviewed and understood well. Their enforceability can also vary by state, so having a lawyer familiar with the state laws that govern the contract is important.
How lawyers help: Employment lawyers will confirm the restrictions are reasonable in duration, scope, and geography. They will also confirm whether or not they are enforceable in your jurisdiction.
Termination Provisions and Severance
Concern 2: Another major concern is what happens if employment ends. Employees want clarity on what circumstances the employer can terminate them (i.e., 'at-will' or if notice is required). They also want to know if they would be entitled to any sort of severance pay.
The risk of being terminated is real, so understanding these terms is critical when evaluating a new job so that expectations are set well and you understand your rights.
How lawyers help: An employment lawyer will review and explain your termination rights and make sure they are fair. They can also advise on whether you are entitled to severance pay or a continuation of benefits, and what is standard for the market.
Compensation Structure, Bonuses, and Reimbursements
Concern 3: Employment offers typically have clear base salary terms. However, many employees express concern about how bonuses are calculated and earned or how commissions are calculated according to the terms of the agreement. Many also want to confirm what types of expenses are reimbursable.
Anything related to payment and earnings is important to understand, especially when it comes to variable compensation. Making sure these terms are written clearly and match your discussions with your employer are also important.
How lawyers help: Lawyers will tell you what the contract says and how any type of compensation is calculated according to the language in the contract. They will also let you know what types of expenses must be pre-approved versus expenses that don't need to be. If there is any discrepancy between your discussions with your employer versus what the contract says, they can also make changes to reflect your understanding of the agreement.
Scope of Work, Exclusivity, and Side Projects
Concern 4: Employees have concerns about a contract limiting their ability to take outside work and requiring full exclusivity to the employer. Terms can sometimes limit working on side projects or personal projects as well.
If you want to work on side projects or pick up freelancing gigs, make sure there is no language in your employment agreement that limits this.
How lawyers help: A lawyer will analyze the terms of the agreement and tell you what you are allowed and not allowed to do. They can also advise on if any exclusivity clause is reasonable and suggest changes that may align with what you want.
Equity Compensation and Vesting Schedules
Concern 5: For employees that are being offered stock options or equity in a company, understanding the legal language and its implication are important. Employees have concerns about vesting schedules, repurchase rights, and what happens if you leave early.
How lawyers help: Employment lawyers will review the language around equity compensation, fully explain to you what it means, and confirm things like vesting terms, repurchase rights, and any other language that may lead to you losing your rights to your equity.
Intellectual Property and Confidentiality
Concern 6: Employment agreements often include clauses about how confidential information is to be treated and who owns the 'work product' or intellectual property created during employment.
Employees can have concerns that they won't be able to use something they created for an employer, as well as keeping certain information confidential.
How lawyers help: Employment attorneys will check that the scope of IP ownership isn’t overly broad and that confidentiality obligations are not too restrictive that they affect future work.
Legal Enforceability Across States
Concern 7: Given employment laws vary state-by-state, many employees have concerns as to what is enforceable in their jurisdiction, especially for non-compete and termination language.
How lawyers help: Lawyers confirm which state law applies to your contract, analyze how enforceable key provisions are, and advise on risks if disputes arise in another jurisdiction.
Key Takeaways
- Employees top concerns are related to their future restrictions to work, termination rights, and compensation terms.
- Equity compensation can carry major financial consequences, so understanding these terms are important.
- IP and confidentiality terms can also carry large consequences, so understand them.
- Hire a lawyer familiar with the state laws of the contract to make sure you are best protected.
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