Before you sign an employment contract, you should carefully review the document for any conditions that do not align with your expectations. Many people overlook red flags that later come back to haunt them.
Here are three key provisions to look for in an employment contract.
1. Arbitration requirements
Companies often prefer to take disputes through arbitration to avoid litigation. While there are pros and cons for both the employer and employee, arbitration does typically favor the employer. You should review any such provision carefully to make sure the conditions are fair to you. You should pay particularly close attention to arbitration clauses that do not meet legal requirements.
2. Non-compete clauses
Non-compete agreements are legal in Texas, but they must meet certain requirements regarding scope and time. For example, a company must limit a covenant not to compete to the geographic area it does business in.
You will want to make sure that if this clause is present in your job contract that it does not prevent you from reasonably seeking future employment.
3. Non-disclosure agreements
A non-disclosure agreement protects a business’s sensitive and proprietary data, including trade secrets. Sharing such information with unauthorized parties can land an employee in legal trouble. Your contract should explicitly detail what type of information falls under this agreement and with who you can share that information.
There are multiple laws regarding what is allowable in an employment contract. If you believe your employer is trying to pursue an unenforceable provision, you may have legal remedies.
