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Employment Agreement.pdf
12 pages · uploaded just now
Summary
Flags
Money
Questions
High risk Acme Technologies Inc.
Red flag Non-compete: 24 months worldwide — far broader than standard.
Ask about Discretionary bonus — no obligation to pay, no defined targets.
Looks fine PTO accrual and rollover are standard and fair.
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Employment Agreement High risk

This is an employment contract between you and Acme Technologies Inc. for a Senior Software Engineer role starting January 1, 2025. The agreement contains several restrictive clauses that significantly limit your rights — particularly around non-compete, IP ownership, and dispute resolution.

Aggressive non-compete and IP clauses broader than standard. Mandatory arbitration waives your right to sue in court.
Key facts
PartiesEmployee and Acme Technologies Inc.
Base salary$120,000 per year
Non-compete24 months after employment ends, worldwide
Notice period2 weeks (both parties)
Red flag
Non-compete (§7.1) — 24-month worldwide restriction. You can't work for any competitor anywhere for 2 years after leaving.
Red flag
IP assignment (§6.2) — covers inventions you build on personal time, on weekends, even if unrelated to the company.
Red flag
Mandatory arbitration (§8.1) — waives your right to a jury trial. You also can't join a class action lawsuit.
Ask about
Discretionary bonus (§2.2) — no guaranteed amount, no defined criteria. The company can eliminate it without notice.
Looks fine
Benefits (§3.1) — 15 days PTO, up to 5-day rollover, health insurance from day one. Standard and fair.
Total contract value
$120,000/year base + discretionary bonus
Market comparison
This contract
$120,000/year
Market rate
$130K–$155K/year
Below market — potentially $10K–$35K below comparable roles
Negotiation script
Base salary +$15K potential
Current offer is $10–35K below market for this role.
"Based on my research, I was expecting closer to $135,000. Is there flexibility to revisit the base salary?"
Non-Compete 2 issues
24-month worldwide restriction. Most enforceable non-competes are 6–12 months and limited to a specific region. This is far broader than standard.
Intellectual Property 1 issue
Any project you build on evenings or weekends — even unrelated to the company — belongs to them. Ask for a personal project carve-out.
Benefits & PTO Standard
15 days PTO with standard rollover, health insurance from day one. Nothing to worry about here.

Bring these word-for-word to your negotiation. You don't have to accept everything as written.

1
"Can the non-compete be limited to 6 months and restricted to my state only?"
2
"Can we add a carve-out for personal projects I work on outside work hours using no company resources?"
3
"Is there flexibility on the base salary — I was expecting closer to $135,000 based on comparable roles."
4
"Can we change termination notice to 30 days for both parties instead of 2 weeks?"
Document comparison

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High confidence · recommendation
Go with: Acme Technologies offer
Higher salary and better benefits offset the stricter non-compete. Push back on the IP clause before signing.
1
Acme Technologies
Employment Agreement · High risk
Pros
$120K base — $5K above Beta Corp
Health insurance starts day one
15 days PTO with rollover
Cons
24-month worldwide non-compete
IP clause covers personal projects
2
Beta Corp
Employment Agreement · Medium risk
Pros
No non-compete clause
Personal projects excluded from IP
Cons
$115K base — $5K lower
90-day insurance waiting period
Only 10 days PTO to start
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Acme Technologies — Employment Agreement
May 12, 2025Employment AgreementHigh risk
4 red3 amber3 fine
Beta Corp — Senior Engineer Offer
May 10, 2025Employment AgreementMedium risk
2 red2 amber5 fine
123 Main St — Lease Agreement
Apr 28, 2025Lease AgreementLow risk
1 red2 amber6 fine
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Non-competes & restrictions
Clauses that limit what jobs you can take or businesses you can start after leaving.
Forced arbitration
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Auto-renewals & cancellation traps
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Data & privacy clauses
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Hidden costs & penalties
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