10 Employment Offer Red Flags to Negotiate Before Signing
An offer letter feels like a celebration. That's exactly when people sign things they shouldn't.
Signing Bonus Clawback Over 12 Months
If you leave within the clawback period, you pay back the bonus. 12 months pro-rated is reasonable. 24 months is a trap. Under $20K, try to eliminate the clawback entirely.
Broad IP Assignment
Some offers claim everything you create during employment, even on your own time and equipment, unrelated to the business. Several states (California, Washington, Illinois) limit this. Get a carve-out for personal projects.
Non-compete Hidden in Handbook
The offer references the Employee Handbook. Ask for it before signing. Non-competes and arbitration clauses often hide in documents you've never seen.
Mandatory Arbitration with Class Waiver
You lose the right to sue and join class actions. Some companies allow opt-out within 30 days of starting — ask.
Discretionary Bonus with No Formula
If the offer says "eligible for a target bonus of 15%" with no formula, treat that number as zero in your budget. I've seen "discretionary" bonuses range from 120% of target to literally nothing.
Equity Without Acceleration
If acquired and terminated, unvested equity disappears. Single or double-trigger acceleration protects you. Standard ask — many companies grant it. PTO "USE IT OR LOSE IT" IN NON-PERMITTING STATES — Some states (California, Colorado) require PTO payout. Confirm the policy matches your state's law.
Have a lease in front of you right now?
Upload it. Our AI flags every red flag mentioned in this guide — in under 10 seconds.
Decode My LeaseFrequently asked questions
Should I get a lawyer?
For senior roles, equity-heavy comp, or non-competes — yes. One hour costs $300-500 and almost always pays for itself.