By Larry Weisberg on July 4th, 2018
When you get a new job, you may be asked to sign an employment contract. No matter how eager you are to start your new job, it’s important to carefully read over the contract and consider whether the contract reflects your best interests. PA employment contract laws provide you with some protection from a bad-faith employer, but reading and understanding the agreement is the first step toward protecting yourself.
Wondering what to look out for when signing an employment contract? Here is what to look for:
1. Non-compete Clause
A non-compete clause can prevent you from working for a competitor for months or years after you leave your current job. In some cases, contracts try to bar you from working in your field for a year or more. If at all possible, try to have the clause removed. If this is not possible, at least try to make the non-compete agreement as narrow as possible and try to shorten it to as few months as possible to ensure you won’t be barred from pursuing promising opportunities in the future.
2. No-Hire and No-Solicit Clauses
A no-solicit clause prevents you from hiring a company’s workers, past workers or current or past clients. A no-hire clause prevents you from working with anyone who has worked for your company’s competitors. In addition to these two, you may see a non-dealing clause, which bars you from working with suppliers or customers of the company after you leave. Also look out for non-poaching clauses, which prevent you from hiring past coworkers.
These clauses can be quite restrictive if you want to start your own business after leaving the company or want to use your network to leverage yourself into a new job. Try to get these types of clauses removed and, if you cannot, try to make them as narrow and as short-term as you can.
3. Arbitration Clauses and Class Action Waivers
More and more employers are requiring new employees to sign documents agreeing that if a dispute arises between you and your employer, that you will forego your opportunity to sue the employer in court and will allow a single arbitrator to decide your case, instead of an actual judge or jury. Employers do this because they think they will be more likely to prevail in the event of a dispute. Employers are also frequently sneaking in provisions which state that you cannot bring a class action against the employer if more than one employee suffers similar harm. These clauses are often overlooked by the employees and are not understood or realized until it is too late. Unfortunately, they can significantly affect your ability to rectify issues that arise either during or after your employment.
If your employer asks you to sign an arbitration agreement and/or a class action waiver, make sure you understand it. If there is a chance to opt-out or not sign the agreement, you may want to consult with an attorney to explore your options.
4. Job Title and the Description of Your Work
You may be so eager to get a signed employment contract before starting work that you skim over this part of the agreement, but it is important. Your job description should match what you applied for and should be detailed. If it is not, you may find yourself with more job duties than you expected or may be asked to complete tasks you did not agree to or for which you are not qualified.
5. Details of Termination
Look for what can cause a termination and how much notice you will be given. Be leery of phrases such as “without cause” and “sole discretion,” as they can indicate your employer can terminate your employment for any reason and at any time, potentially without telling you first.
6. Invention Assignment Agreement
This agreement requires you to tell your employer about any new inventions you’ve created before you leave the organization. For example, if you have written a new software program while working for the company to improve the company’s systems, you will need to reveal this to the employer before you move on, to allow the organization to protect it with patents or other protections. This clause is meant to make ownership clear and to keep ownership and copyright with the organization, preventing you from taking the work to your new job.
7. Working Hours and Leave
How much vacation time do you have? Can you take it at busy periods, such as the holidays? How many sick days do you have? How many hours a week will you work? Pay close attention to this section to make sure you will be working the number of hours you applied for and will get paid sick leave and holiday leave so you have time to regroup. Also, pay attention to when you will be working. If you are expected to work holidays, evenings and weekends, you want to ensure you will be paid overtime or will be compensated in some fashion.
8. Notice Periods, Start Dates and End Dates
When does your employment agreement and work begin? Does it have a set end date? If you leave the company, how much notice will the company give you? In general, you want to make sure the start date and end date are accurate. You also want the notice date to be as generous as possible to give yourself time to get a new job and to adjust to a new work situation.
When to Hire an Attorney
Now that you know what needs to be in a contract of employment, you may be concerned about the terms of your current or proposed employment contract. If so, contact Weisberg Cummings, P.C. to speak to an employment law attorney. Our attorneys have more 40 years of combined experience and can advise you of your rights and may be able to help you negotiate for fair employment terms.