Starting a new job is exciting, especially when the salary looks good, it matches your career goals and you’re ready to move on from your current position.
However, you need to take some time to review the employment contract thoroughly. This legal document can significantly affect your rights, your future job opportunities and even your ability to earn a living if you leave. Here are some red flags to look for before signing.
1. Overly broad non-compete clauses
The Illinois Freedom to Work Act imposes strict guidelines on non-compete clauses, and employers must meet certain requirements. Red flags to look for include:
- Restrictions lasting several years
- Wide geographic areas that extend far beyond where you work
- You are prohibited from working in an entire industry
The law also sets salary thresholds for enforceable non-compete and non-solicitation agreements. If your salary falls below those thresholds, the non-compete clause may not be valid.
2. Vague “For Cause” termination definitions
If your contract allows termination “for cause”, look closely at how “cause” is defined. If you can be fired for failing to meet performance expectations when there are no clear standards, or there are broad “conduct detrimental to the company” clauses, then you may want to reconsider or request more clarity.
Vague definitions can make it easier for an employer to terminate you without a severance package. Contract language matters, and courts often look at the specific wording when deciding disputes.
3. Expansive confidentiality clauses
It’s reasonable for companies to include confidentiality clauses to protect legitimate business interests. However, employees have certain rights under state and federal laws. Your contract shouldn’t prohibit you from discussing:
- Your wage
- Workplace conditions
- Potential legal violations
Contracts that appear to waive those rights deserve careful review.
Most employment contracts don’t contain hidden traps. But when descriptions are vague or restrictions are broad, they deserve closer attention. An employment contract should protect both parties. If it seems one-sided, you may want a legal representative to review it before you sign.