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An employment contract defines the terms of your working relationship: your title, compensation, start date, duration, grounds for termination, and post-employment restrictions. It may include a non-compete, non-solicitation agreement, NDA, IP assignment clause, and dispute resolution terms.
Employment contracts are almost always drafted by the employer's lawyers to protect the employer. Non-compete clauses can prevent you from working in your field for years. IP assignment clauses can give your employer ownership of personal projects you build on nights and weekends. Arbitration clauses waive your right to sue. Most people sign these documents the day they start a new job, under excitement and time pressure, without reading them carefully.
""Employee hereby assigns to Company all right, title, and interest in any Inventions, whether or not patentable, conceived or developed by Employee during the term of employment, including those developed on personal time using personal equipment.""
↑ From a real tech employment agreement — this IP assignment clause covers everything you build, including personal side projects.
California, Minnesota, Oklahoma, and North Dakota ban most non-competes entirely. If you're in one of these states, a non-compete clause is likely unenforceable.
Before signing, list your existing side projects in a signed exhibit attached to the contract. This protects your personal IP from the assignment clause.
A reasonable non-compete covers your specific role and geography, lasts 6 months, and names only direct competitors — not the entire industry.
Arbitration waivers are especially significant for employment discrimination and wage claims — areas where juries tend to be more sympathetic to employees.
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Pay special attention to any flagged non-compete, non-solicitation, or IP assignment clauses.
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