1. Non-compete clauses
    Non-compete clauses restrict your future employment after your employment has ended.  Massachusetts law does not allow for these restrictions against certain individuals, and when non-competes are permissible, there are specific requirements that employers must follow to ensure the restrictions are not unreasonable or overly restrictive.
  2. Non-solicitation clauses
    Non-solicitation clauses prevent employees from attempting to persuade clients or other employees from leaving the employer.  Depending on your industry and job description, these clauses can impact your future employment and success and should be carefully reviewed.
  3. Arbitration clauses
    Arbitration clauses require you to submit to arbitration, rather than suing in court, when legal claims arise.  These clauses can significantly limit your legal rights, such as a right to a jury trial, and are often enforceable.
  4. Exclusivity Clauses
    These clauses restrict you from working for other employers during your employment (unlike non-compete clauses, which restrict you after your employment is over).  Depending on your situation, this type of clause may or may not be appropriate.
  5. Indemnification Clauses
    Indemnification clauses aim to shift liability from the employer to the employee, and are not usually appropriate in employer-employee relationships.
  6. Provisions that allow the employer to recoup bonuses
    Be wary of clauses that require you to repay a sign on bonus you have already received if you do not stay with the employer for a certain length of time, or condition the bonus on other terms.
  7. Provisions that state you will not be paid commissions if you are terminated
    Massachusetts law states that employers must pay commissions that are calculable and due at the time of termination, this can be true in some instances even where your contract states otherwise.  Although a term like this may be unenforceable, having it appear in your contract may be a signal that you will have an uphill battle trying to secure commission payments during an employment separation.
  8. Provisions that prevent you from sharing your salary
    Massachusetts law protects an employee’s right to discuss compensation with others.  This right aims to reduce unequal pay practices.
  9. Lack of detail
    Your employment agreement should detail your title, salary, and job description, as well as other important terms of the employment relationship.  A vague employment contract can benefit the employer and allows for misunderstandings between the parties as to your role.
  10. Choice of Law Provisions
    Choice of Law clauses aim to determine which state’s law governs the agreement.  States have their own complex rules that determine whether or not choice of law provisions are enforceable in varying situations.  Although a Choice of Law Provision can be helpful and can provide clarity to a contract, they should be carefully considered, especially in situations where states’ laws protecting employees vary significantly.

Conclusion

These red flags are not a complete or exhaustive list of all of the important clauses in employment agreements but they are some of the most notable. Our firm can provide an in-depth review your employment contract, as well as assist you in negotiating the terms of your agreement.  Contact us today.

Contact us to schedule a free consultation to discuss your situation.