How to Scan a Job Offer for Hidden Traps

πŸ“• Legal Literacy Β· 5-card lesson Β· Free

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Card 1 β€” The Goal

🎯 The Goal: Never sign an employment agreement on emotion alone. The offer letter is exciting; the attached agreement is a contract written by their lawyers, for them. Skip the salary paragraph you already know and go straight to the termination and IP clauses β€” that's where 'at-will' exit traps and sneaky wording claiming ownership of your personal side projects hide.

Card 2 β€” Step 1

🧨 Step 1: Hunt the IP clause β€” it can own your nights and weekends. Look for 'Assignment of Inventions' or 'Intellectual Property' sections. The trap wording: the company owns anything you create 'during the term of employment' β€” read literally, that includes the app you build at home on Sundays. What you want: ownership limited to work created (a) within the scope of your job, (b) using company time/equipment/confidential info. The fix is one sentence: ask for an exclusion listing your existing projects (attach the list β€” 'Exhibit A' style) and confirm personal projects outside work scope stay yours. Several states (like California) legally protect side projects anyway β€” but get it in writing regardless.

Card 3 β€” Step 2

πŸšͺ Step 2: Read the exit BEFORE the entrance. Termination clause questions: 1. Notice period β€” do THEY owe you notice/severance, or only you owing them? 2. Repayment traps: signing bonuses and relocation often must be repaid if you leave within 12-24 months β€” know the cliff dates. 3. Non-compete: how long, what geography, what 'competitor' means (overbroad ones are unenforceable in some states β€” and banned in several β€” but fighting one is expensive even when you'd win; negotiate scope NOW). 4. Non-solicit: can you recruit old teammates or serve old clients later? 5. 'Garden leave' or unpaid restrictions. Companies expect pushback on these β€” 'can we narrow the non-compete to 6 months and direct competitors only?' is a normal, safe ask.

Card 4 β€” Step 3

πŸ” Step 3: Sweep the remaining fine print. 1. Job title/duties 'subject to change at company discretion' β€” normal, but pair it with a compensation floor. 2. Arbitration clauses: you're waiving jury trials; increasingly standard, worth knowing you signed it. 3. Bonus/commission terms: 'discretionary' means exactly that β€” if your comp depends on it, get the formula and payment timing in writing. 4. Equity: vesting schedule, cliff, and β€” critical β€” what happens to unvested AND vested shares if you're terminated or the company sells. 5. Verbal promises ('we'll review salary in 6 months', 'remote is fine') are worth $0 unless written β€” reply to the offer email listing them: 'confirming our discussion that…' A yes costs them nothing now; missing proof costs you everything later.

Card 5 β€” The Cheat Sheet

πŸ“‹ The Offer-Scan Checklist (20 minutes, in order): 1. IP clause β€” personal projects excluded, in writing βœ“ 2. Non-compete/non-solicit β€” narrow scope, short duration βœ“ 3. Bonus/relocation repayment cliffs noted βœ“ 4. Commission/bonus formula in writing βœ“ 5. Equity vesting + termination treatment βœ“ 6. Every verbal promise confirmed by email βœ“. Negotiation reality: asking for clause changes does NOT rescind offers β€” recruiters see it weekly; the worst case is 'no, standard terms.' For senior roles or weird clauses, one hour of an employment lawyer's time (~$200-400) before signing is the cheapest insurance in your career. Sign excited β€” but sign informed.