In this guide
Relying on Verbal Promises
A classic mistake is accepting a job based on verbal assurances about salary, bonuses, or remote work, only to find the written contract says otherwise. If a promise is important to you, it should be in writing. Oral agreements are hard to enforce, and most contracts contain an 'entire agreement' clause stating that the written document supersedes all prior discussions.
Before signing, compare every verbal promise with the written terms. If there's a discrepancy, ask for the contract to be amended to reflect what was promised. If the employer refuses, you may need to reconsider whether the job is right for you.
Also, be cautious about promises made in offer letters that are not included in the final contract. Some offer letters are not binding, while others are considered part of the agreement. Clarify with HR which documents form the complete contract. You can employment contract with a state-specific template here.
- List all verbal promises and request them in writing.
- Ensure the contract includes a clause that all terms are contained within it.
- Get any amendments in writing and signed by both parties.
Overlooking Job Duties and Reporting Lines
Many contracts vaguely state 'other duties as assigned,' leaving you open to scope creep or unexpected responsibilities. While some flexibility is normal, a contract that fails to define your role can lead to disputes over performance expectations and even grounds for termination.
Make sure the contract clearly describes your position, key responsibilities, and to whom you report. If the role evolves, request a formal update to the contract or a written job description. This is especially important for senior roles where accountability matters.
In a freelance or independent contractor agreement, the scope of work is even more critical. A vague project description can lead to endless revisions or unpaid extras. Define deliverables, timelines, and what is out of scope.
- Insist on a specific job title and summary of duties.
- Clarify the chain of command.
- For contracts, detail the exact deliverables and what constitutes completion.
Ignoring Compensation and Benefits Details
Beyond the base salary, contracts often spell out bonus structures, commission rates, and benefits eligibility. A common mistake is not understanding how these are calculated or when they vest. For instance, a bonus might be discretionary, meaning you have no guaranteed right to it.
Review the payment schedule, overtime policies, and any deductions. If you are an independent contractor, note whether you are paid per project or hourly, and what expenses are reimbursable. Clarity here prevents payment disputes later.
Also, examine benefits like health insurance, retirement contributions, and stock options. The contract should state when benefits begin and any waiting periods. If you are leaving a previous job, ensure there is no gap in coverage.
- Ask for a breakdown of how bonuses and commissions are calculated.
- Clarify whether benefits are subject to a probationary period.
- For contractors, specify invoicing procedures and payment terms.
Misunderstanding Termination and Notice Clauses
Termination clauses can be a trap. Some contracts allow termination 'at will,' meaning either party can end the relationship at any time, with or without cause. Others require notice periods or define 'cause' narrowly. If you are terminated without cause, you may be entitled to severance—but only if the contract says so.
Carefully read the notice period you must give if you resign. Some contracts require two weeks, others 30 or 60 days. Failing to comply could result in forfeiting unpaid wages or benefits. Conversely, the employer's notice period should be reasonable and comply with state law.
For independent contractors, termination clauses are often overlooked. If the client can end the project early, what happens to your payment for work already done? Ensure the contract addresses this, perhaps with a kill fee or payment for completed milestones.
- Determine if you are an at-will employee or if cause is required.
- Know the required notice for resignation and termination.
- Negotiate severance or protection for early project termination.
Signing Away Your Rights in Non-Compete and IP Clauses
Non-compete agreements restrict your ability to work for competitors after leaving a job. These clauses vary widely by state; some are unenforceable, while others are strictly limited. Signing a broad non-compete without understanding its scope can harm your future career.
Similarly, intellectual property (IP) clauses often assign all inventions and creations to the employer, even those made on your own time. If you have side projects or plan to invent, you need to negotiate carve-outs or ensure the clause only covers work-related IP.
Review confidentiality clauses as well. They should protect legitimate business secrets but not prevent you from discussing wages or reporting illegal activity. Some overly broad confidentiality agreements can violate labor laws.
- Check the duration and geographic scope of any non-compete.
- Negotiate to exclude personal projects from IP assignment.
- Ensure confidentiality clauses allow you to report wrongdoing to authorities.
Not Negotiating Before Signing
Many employees feel they must accept the contract as-is, but negotiation is often possible, especially for higher-level roles. Failing to negotiate can leave money and benefits on the table. Even if the employer says the terms are standard, you can ask for changes to specific clauses.
Prioritize what matters most: salary, flexible work, notice period, or non-compete restrictions. Approach negotiation professionally, offering a rationale. For example, if a non-compete is too broad, ask to narrow it to your actual role or industry.
Remember that a contract is a two-way street. If the employer is inflexible, consider whether that signals how they will treat you as an employee. Sometimes walking away is the best option if the contract is overly one-sided.
- Identify your top three priorities for negotiation.
- Get any agreed changes in writing before you sign.
- Be prepared to compromise on less critical points.