Things to do Before Signing an Employment Contract

Employment contracts are important documents that outline your job title, expectations, and other agreements. It is important that you and your employer have a shared understanding on the items in your contract before signing. Here are key items you should review when you are negotiating your contract:

Check Job Title and Description of Duties

Make sure the job title is what you want and negotiated.  If your employer specifies your job responsibilities, make sure they are accurate, so you and your employer have the same set of expectations.   

Review Wages and Benefits

This is critical. Your contract states the specifics of your compensation, including how and how much. For example, if you are a salaried employee, make sure your annual compensation is listed correctly in the contract. If you believe your position pays overtime, your contract also must reflect this. In addition to your salary, make sure the agreement contains all of the benefits you discussed or negotiated such as paid leave, holidays and vacation days, 401K plans, health insurance, disability insurance and the like.   

Review Important Clauses

Certain clauses may affect your future employment, such as:

Non-Compete Clause

Many employers will include a non-compete clause to prevent former employees from taking a job in direct competition with them. For example, most non-compete clauses prohibit former employees from working in a similar job within a certain distance from the former employer, and for a certain duration of time.  In addition, non-competes may include provisions prohibiting former employees from contacting or taking business clients away with them.  It is important that you read and understand this clause because it may limit your future career options and ability to find a new job. 

Confidentiality Clause

This is another critical section of an employment contract that you need to understand because it will affect you after you leave. Many employers will include a confidentiality agreement to make sure you do not share confidential information such as trade secrets or intellectual property with others, including future employers. Make sure the confidentiality agreement contains a specific definition of what information is covered. 

Your Employment Contract Matters

If you need assistance negotiating, writing, or reviewing an employment contract, McOmber McOmber & Luber, P.C.’s employment lawyers are available for consultation. Please call our office in Red Bank, New Jersey at 732-842-6500, our Marlton, New Jersey office at 856-985-9800, or our Newark, New Jersey office at 973-787-9040 find out more.