So you got the job…WOOHOO! 🤠 It's time to pop the bubbly and get out your best jazz hands. 🥂👐 But before you party too hard, make sure you're not signing your soul away to a workplace devil. 😈
Employment contracts are a common thing, but not all are created equal. In fact, they can include some pretty shady bullshine. If you're not reading with a careful eye or sign your name too quickly, you could be in some deep job cowpie. 🥴💩
Of course, we don't want that for our loyal fans out there. If your employment contract has any of the following things included, beware!
Here’s Five Fast Facts on employment contract red flags:
- 📝 Compete This - One potentially shady clause in an employment contract is a non-compete agreement. These can limit the kind of work you do or who you work for if you ever leave the company. For example, the company could take legal action against you if you start working for a competitor. Make sure you think long and hard about your potential future before signing the dotted line.
- 🪢 Here's the Twist - Side note about non-competes: depending on which state you live in, they could be harder to enforce. California and Massachusetts make things pretty tough for a company to take action, but New York is a bit more employer-friendly. Check the laws in your state to see how they handle things.
- 💵 Bonus Round - If your employment contract has phrases like "the company may…" or "in the company's sole discretion," pay attention to what comes afterwards. You'll typically see this language around bonuses and incentives on top of your regular pay, which is normal. However, sometimes it may come before unreasonable expectations from the employer. If the employment contract says you'll only be paid if you sell a billion widgets a month, but in the interview it was only a thousand, make sure you clear things up before accepting the offer.
- ✂️ Cut. It. Out. - Employment contracts usually have severance clauses which outline how the employer handles layoffs and terminations. It's common for companies to include something that says "you're entitled to severance payments unless you're terminated for cause." In other words, you'll get your severance as long as you weren't fired for being a total doofus. However, it's a red flag if they mention withholding severance payments due to subjective stuff like "performance standards," which can be a moving target and tough to fight against.
- 🪤 It's a TRAP - If you're starting a job with big benefits like cross-country relocation or an expensive training program, check to see if your contract has a repayment clause. They're common, but something to really think about. If you were only planning to take the job to get to the West Coast with all expenses paid, you might be on the hook if you quit within a certain time frame. Another thing: keep an eye out for training repayment agreements (AKA TRAPS, cute, huh). If you quit or are terminated, a TRAP could mean you shelling out the big bucks your company spent on that six-week Widget Maker's Training in the Bahamas.
🔥Bottom line: Job offers are super exciting, but don't let your celebrations blind you to a potentially bad situation. Another pro tip: have your family and friends review your employment contract to spot something you may have missed. Did your team survive your company's 183,637th merger? If not, lick your wounds with our article on how to deal with layoffs.
Have you encountered any of these red flags in the wild?
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