Home Q&A Forum Can I negotiate the terms of a compensation agreement with my employer?

Employee Rights

Compensation Agreement

California

Asked on Oct 20, 2024

Can I negotiate the terms of a compensation agreement with my employer?

I recently received a job offer from a new employer, and they have presented me with a compensation agreement that outlines my salary, benefits, and other financial arrangements. While I am excited about the opportunity, I have some concerns about certain aspects of the agreement, such as the bonus structure and non-compete clause. I would like to know if it is possible to negotiate these terms with my employer before accepting the offer, and if so, what steps should I take to initiate the negotiation process?

Answers from 2 Lawyers

Answer

Employee Rights

California

Answered 628 days ago

Dolan W.

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Business Lawyer
Licensed in California
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September 8, 2024

Hello! Congrats on the new job! One little-known, but very effective tool that lawyers use to settle matters outside of court is called principled negotiation.  All this means is that you are looking to get something done on the basis of principles, even if you can’t find a law to support you.  It takes the anxiety out of dealing with the other side because you’re focused on the facts, not each other.  With that said, here are some simple steps you can follow: Figure out what the other side’s interests are (saving money, saving time, etc.?); Think about what your interests are (saving money, saving time, etc.?); Come up with 2 to 3 reasonable and objective ways to solve the problem; Present it to the other side; If the other side rejects, ask them, “Is there a reason why you do not feel it is necessary to negotiate?” Consider what your best alternative to a negotiated agreement is.  This will give you confidence that no matter what, you'll have an option. Of course, these are just building blocks to get the other party to help solve the dispute.  Believe me when I say that good lawyers use this technique all the time to keep things out of court.  You’ll find that it is very effective even with the most stubborn of individuals. In your case, you could offer something like offer not to solicit current customers. Also, CA law prohibits non-compete agreements in most case anyway so this contract probably needs revision. Please come back to us so we can review it! Best of luck! Dolan

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Answer

Employee Rights

California

Answered 628 days ago

Jared S.

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Business Lawyer
Licensed in Idaho, Utah
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October 8, 2024

Yes, you can negotiate the terms of your employment agreement in California. Common negotiable terms include salary, benefits, job duties, severance packages, non-compete clauses, and confidentiality provisions. California law also provides certain protections, such as restrictions on non-compete agreements and rules governing overtime and wages, which can influence the negotiation process.

Use of the ContractsCounsel Q&A Forum does not create an attorney-client relationship between User and any Lawyer User. The Forum is not a substitute for legal advice from a lawyer but is intended to be educational and to help the user determine if legal services are necessary. The Forum, Content, and communications on the Forum do not constitute legal advice.
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Hello! I'm so sorry this is happening to you. Generally, if you have a contract (the handbook or policy), then you are bound to those terms. If the employer changes the terms, they are allowed to; however, they need to give you some notice of the change in those specific terms in advance. This means that they should give you notice equal to the time between pay periods (e.g. two weeks). If they make a change, then it's not technically enforceable until you get proper notice. The notice does not need to be in writing. Good luck! Dolan

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