Before you sign the offer, know the trade.

It depends on the state and the role. California, North Dakota, Oklahoma, and Minnesota broadly prohibit non-competes for most workers. The FTC issued a near-total ban in 2024, but the rule has been challenged in court. Many states limit non-competes for low-wage workers. Our analyzer flags non-competes and notes their typical enforceability.

It assigns the rights to inventions, code, designs, or other creative work to your employer. Overreaching versions claim ownership of work you do on personal time, on personal equipment, or on unrelated projects — even before or after employment. Several states (notably California) limit how far an employer can reach.

It significantly limits your remedies if your employer mistreats you. You waive jury trials and class actions. The 2022 Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act voided arbitration for those specific claims, but everything else is generally still subject to forced arbitration if you sign.

Look for: trigger conditions (involuntary termination, "without cause," "good reason"), the formula (e.g., 2 weeks per year of service), continuation of benefits, treatment of unvested equity, and any release/waiver requirements. Many contracts make severance entirely at the employer’s discretion — that’s a red flag.