Starting a new job is an exciting milestone. Employees are often focused on learning their new role, meeting colleagues, and making a strong first impression. However, in the rush to begin a new opportunity, many employees overlook important legal documents and contractual obligations that can significantly impact their rights and future career opportunities. As an employment attorney, I frequently see individuals facing avoidable legal challenges because they failed to carefully review employment agreements before signing them. This blog further addresses those mistakes and corresponding circumstances.
One of the most common mistakes employees make during onboarding is signing employment documents without thoroughly reading and understanding every provision. Employment agreements often contain complex legal language that may appear routine but can carry substantial consequences. Many employees assume these documents are standard forms and sign them quickly to avoid delaying their start date. Unfortunately, this approach can create problems months or even years later.
A particularly important area of concern involves non-compete and non-solicitation provisions. While the enforceability of these clauses varies by state and jurisdiction, they can still significantly affect an employee’s future employment options. A non-compete agreement may restrict an employee’s ability to work for a competitor or start a competing business after leaving the company. A non-solicitation provision may prohibit the employee from contacting former clients, customers, vendors, or even coworkers for business purposes after their employment ends.
Many employees do not realize they are agreeing to these restrictions until they receive a cease-and-desist letter from a former employer or become involved in litigation. By that point, the employee’s options may be limited. Reviewing these provisions before signing allows employees to understand the scope of the restrictions and, in some cases, negotiate more reasonable terms before accepting employment.
Another frequently overlooked provision is the arbitration agreement. Arbitration clauses are increasingly common in employment contracts and often require employees to resolve workplace disputes through private arbitration rather than through the court system. While arbitration may offer certain benefits, such as a potentially faster resolution process, it can also limit procedural rights that employees would otherwise have in court.
Employees often sign arbitration agreements without understanding what they are giving up. Depending on the agreement, they may waive their right to a jury trial, limit discovery opportunities, or agree to specific procedures governing employment disputes. These provisions can affect how discrimination claims, wage and hour disputes, retaliation claims, and other workplace matters are resolved. Understanding the practical implications of an arbitration clause before signing is critical.
Perhaps the biggest mistake employees make is failing to have an employment attorney review the agreement before they sign it. Many individuals assume that seeking legal advice is unnecessary or too expensive. In reality, a brief review by an experienced employment attorney can identify restrictive provisions, explain legal obligations, and help employees understand their rights before they become contractually bound.
The consequences of not obtaining legal review can be significant. Employees may unknowingly agree to restrictive covenants that limit future job opportunities, arbitration provisions that alter dispute resolution rights, confidentiality obligations that extend beyond employment, or repayment requirements tied to bonuses, training costs, or equity awards. Once an agreement is signed, modifying unfavorable terms becomes far more difficult.
Importantly, employees generally have the greatest leverage before they sign an employment agreement. Employers are often willing to clarify language, answer questions, or negotiate certain provisions during the hiring process. After onboarding is complete, that negotiating leverage frequently disappears.
Before signing any employment agreement, employees should take the time to read every document carefully, ask questions about unclear provisions, and consider obtaining legal advice. A small investment in legal review at the beginning of an employment relationship can help prevent costly disputes and unexpected restrictions in the future.
Starting a new job should be an exciting step forward in your career. Taking the time to understand the legal documents you sign can help ensure that opportunity remains a positive one. Schedule a consultation if you think you have a case or are seeking advice on your employment related documents. https://www.wiley-wheeler.com/