What clauses should I look for before signing my employment contract?
The short answer
An employment contract or offer letter contains several categories of clauses that can affect your rights and obligations long after the first day of work. The most consequential ones to find and read before signing are: the compensation and bonus structure, any non-compete or non-solicitation restrictions, the arbitration agreement and class-action waiver, the IP and invention assignment clause, the modification clause, and any repayment obligations (training repayment, relocation repayment). Most of these clauses are not negotiable at every employer, but knowing what they say tells you what you are agreeing to. Scan your offer to see which of these are present, how they are written, and what to ask about before signing.
What Dang reviews here: Dang reviews the clause language in your employment agreement and offer letter — what the compensation, non-compete, arbitration, IP, and non-solicitation terms say and what to ask about them. It does not verify wage, hour, or leave compliance.
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The clause categories that most commonly affect employees post-signing
Compensation and bonus clauses define what you are owed and under what conditions — whether a bonus is discretionary or formula-based, whether commission is subject to clawback on returns, and whether equity vesting has conditions attached. Non-compete and non-solicitation clauses define what you can and cannot do after leaving — affecting every job search in the months or years after departure. Arbitration clauses typically waive your right to a jury trial for employment disputes and often include a class-action waiver. IP and invention assignment clauses define what you own versus what the employer owns — including side projects in some cases.
Modification clauses define whether the employer can change terms unilaterally with notice or needs written consent. Repayment clauses — for training costs, relocation expenses, or sign-on bonuses — define what you might owe if you leave within a stated period. At-will language defines the default termination relationship. Each of these is a clause to find and read, not assume.
Why people worry
Employment contracts are commonly signed under time pressure with a start date approaching, and the excitement of a new role tends to shorten the review. Workers most often report regret about non-compete clauses they did not fully read, repayment obligations they did not notice, and arbitration waivers they did not understand. A focused checklist review — even a quick one — is usually enough to identify the provisions that most warrant a question or a closer read.
What to look for in your offer
- Compensation structure: base, bonus (discretionary vs. formula), equity vesting schedule and cliff, and any clawback on sign-on bonus.
- Non-compete and non-solicitation clauses: scope, duration, geography, and governing-law designation.
- Arbitration clause and class-action waiver: what disputes are covered and whether jury trial is waived.
- IP and invention assignment: what you create at work and on your own time, and whether a prior-inventions carve-out is available.
- Repayment obligations: training costs, relocation expenses, or sign-on bonus clawback if you leave within a stated period.
Questions to ask before signing
- Ask the employer whether any non-compete or non-solicitation clauses can be narrowed — in scope, duration, or geography.
- Ask the other party to clarify whether a prior-inventions schedule can be attached to protect pre-existing work.
- Confirm which repayment obligations apply and what triggers them — resignation only, or termination too.
- Consider having the agreement reviewed if it includes a broad arbitration waiver, a significant repayment obligation, or a non-compete that would limit future roles.
Why scan instead of guess
The general rule tells you the baseline. Your offer tells you what you’re actually being asked to sign — and the wording is what binds. Dang reads the document and flags the clauses worth reviewing, in plain English.
The deterministic engine scores and decides what’s risky. The AI only enriches the plain-English wording — AI extracts, code decides, never the other way around.
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Common questions
Are all of these clauses negotiable?
It varies by employer. Large companies with standardized offer agreements often have limited flexibility; smaller employers and senior roles typically have more room. Knowing which clauses are present and what they say is the prerequisite to knowing what to ask about.
What is the most important clause to read?
It depends on your situation — but non-compete scope and arbitration waivers are frequently the clauses that most significantly affect future options and rights. Repayment obligations come close for anyone considering leaving within a year of starting.
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English — general information, not legal advice about your situation. For consequential decisions, consult a licensed attorney in your state.