Employment Contract Checklist Before You Sign (Printable)

You've received a job offer. The role sounds great, the company seems solid, and you're excited to move forward. But that employment contract sitting in your inbox? It's easy to skim it, assume everything looks fine, and sign. That's where things get risky.

Employment contracts shape your entire working relationship—they define what you'll earn, what you can't do after you leave, and how disputes get resolved. Missing a single clause or accepting vague language can cost you thousands in lost equity, restrict your career options, or leave you vulnerable in a dispute.

This checklist breaks down the five critical areas of any employment contract and gives you a concrete way to verify each one before you sign. Print it, use it, and bring it to your negotiation conversation.

Compensation: Get the Money Right

Salary and benefits are often the easiest parts to negotiate, but only if you know what to look for. Vague language here creates problems later.

Base Salary Verify the exact annual amount is stated in writing and matches what you discussed verbally. Check if it's subject to tax withholding and whether there's any mention of deductions.

Bonus Structure If a bonus is promised, confirm whether it's guaranteed or discretionary. For discretionary bonuses, look for the formula or criteria used to calculate it. A "discretionary bonus up to 20%" is meaningless without knowing what "discretionary" actually means in practice.

Equity (Stock Options or RSUs) Note the total grant amount, vesting schedule, and cliff period. A four-year vest with a one-year cliff is standard in tech, but some companies offer different terms. Verify the strike price for options and whether there's acceleration in a change of control.

Salary Review Timing Confirm when your compensation will be reviewed and whether there's any guarantee of adjustment. Annual reviews are standard, but some contracts are silent on this entirely.

Benefits and PTO Count the vacation days, sick days, and any other paid time off. Check if unused days roll over or are forfeited. Verify health insurance coverage starts on day one or after a waiting period.

Role Definition: Know What You're Signing Up For

A vague job description can lead to scope creep, conflicting expectations, and frustration. Pin down the specifics.

Job Title Confirm the exact title. This matters for LinkedIn, references, and future job searches. "Senior Engineer" and "Staff Engineer" carry different weight.

Reporting Structure Verify who you report to and, if relevant, what teams you'll manage. If the reporting structure changes during onboarding, that's a red flag.

Primary Responsibilities Look for a brief description of your core duties. If it's completely open-ended or lists 15 different responsibilities, ask for clarification on what actually matters.

Work Location State whether the role is fully remote, in-office, or hybrid. If hybrid, specify how many days per week and which office. Remote-first companies should explicitly say so.

Travel Requirements If travel is expected, get a realistic estimate. "Travel as needed" is different from "expect 20% travel" or "no travel."

Restrictions: Understand Your Limits

Non-competes, non-solicits, and IP clauses can restrict your career long after you leave. Read these carefully.

Non-Compete Duration and Scope Note the exact length (six months, one year, two years) and the geographic area it covers. A two-year non-compete in a 50-mile radius is very restrictive; a six-month non-compete in your city is more reasonable. Ask whether it applies only to direct competitors or to the entire industry.

Non-Solicitation of Employees and Clients Verify how long you can't recruit former colleagues or solicit clients. This often lasts 12-24 months after departure. Ask if it applies to all employees or just those you directly managed.

Intellectual Property Assignment Confirm what IP the company owns. Most contracts claim ownership of work created during employment, but check if there are carve-outs for side projects or work done on your own time using your own equipment. Some states limit how broadly companies can claim IP.

Confidentiality and NDA Terms Note what information is considered confidential and for how long. Ensure the definition isn't so broad that you can't discuss your own work experience in future interviews.

Termination: Know Your Safety Net

Termination clauses protect you when things fall apart. Don't skip this section.

Severance Package If severance is promised, verify the amount (often stated as weeks of salary), conditions, and whether it applies if you're fired for cause. Check if severance requires you to sign a release or non-disparagement agreement.

Notice Period Confirm how much notice you must give (typically two weeks) and whether the company must give you the same notice. Some contracts require 30 days from the company but only two weeks from you—that's imbalanced.

Cause Definition Look for how "cause" is defined. Vague language like "gross misconduct" is problematic. Better contracts list specific examples: theft, violence, repeated policy violations after warning, etc.

Change of Control If there's a merger or acquisition, does your equity accelerate? Are you entitled to severance if your role is eliminated? This matters significantly if the company is startup-stage or acquisition-target-adjacent.

Final Paycheck and Accrued PTO Verify that you'll receive your final paycheck within the timeframe required by state law and that accrued but unused PTO will be paid out.

Dispute Resolution: Know Where Conflicts Land

If something goes wrong, how do you resolve it? This section determines your options.

Arbitration vs. Litigation If the contract requires arbitration, you can't sue in court. Arbitration is often faster but less transparent and harder to appeal. Some contracts allow you to opt out of arbitration within 30 days—check for that.

Governing State and Jurisdiction Note which state's law governs the contract. If you live in California but the contract is governed by Delaware law, disputes will be handled under different rules. This matters for non-compete enforceability, wage laws, and employee protections.

Attorney's Fees Confirm whether each party pays their own legal fees or whether the loser pays both sides' fees. "Loser pays" clauses discourage you from bringing legitimate disputes.

Class Action Waiver Some contracts require you to waive class action rights. This limits your ability to join a lawsuit with other employees over wage violations or discrimination. Consider whether you're comfortable with this.

Practical Tips for Using This Checklist

Print it and use it as a reference. Don't just scan the contract once. Go through each section methodically with the checklist in hand. Mark items that are missing, unclear, or concerning.

Compare to industry standards. If you know people in similar roles at similar companies, ask what their contracts include. You'll quickly spot if you're being offered below-market terms.

Ask for clarification in writing. If something is vague or missing, email the recruiter or hiring manager with specific questions. Get answers in writing—don't rely on verbal promises.

Negotiate before you sign. Most employment contracts have room for negotiation, especially around equity, severance, and non-compete scope. The time to ask is before you sign, not after.

Know your state's laws. Some states (like California) don't enforce non-competes at all. Others have strict rules about what can be restricted. A quick search for "[your state] non-compete enforceability" will save you stress later.

Don't assume everything is standard. Just because a clause is in the contract doesn't mean you have to accept it. Equity vesting schedules, severance amounts, and non-compete duration are all negotiable.

Ready to Review?

An employment contract is one of the most important agreements you'll sign. It deserves more than a quick skim before clicking accept. Use this checklist to make sure you understand what you're agreeing to and that nothing important is missing or buried in unclear language.

Have a contract to review? Try KlausClause.

This article is for informational purposes only and does not constitute legal advice.