What to Look for in an Employment Contract

“Position located in [city], or such other location as the Company may reasonably designate…”
This clause suggests the company can decide where to move you if relocation is needed. If you’re open to moving to a different city (and being paid for it), it fits you.

“Duties include travel up to X%, or as deemed necessary by management to fulfill operational needs.”
This offer is best for people who don’t mind traveling — though if you do, make sure your travel expenses are reimbursed.

“Hybrid and remote work arrangements remain subject to modification or revocation at the sole discretion without prior notice.”
In this case, whether you work remotely or not depends on a manager’s decision. 

“Exempt status... salary covers all hours necessary to fulfill assigned duties, regardless of schedule.”
This means you’re paid for outcomes, not hours, and you’re not compensated for overtime. Exempt employees genuinely aren't entitled to overtime under the FLSA,  but a contract clause can't make you exempt. That depends on your actual duties plus a salary floor ($684/week federally, higher in some states), and the Department of Labor is clear that job titles never determine exempt status. If the clause is doing the classifying, ask what duties they think qualify.

“Expected to remain accessible and responsive as reasonably required by global operations.”
This phrase suggests that you may be working on someone else’s clock. If someone else has a different shift, you might be expected to respond even when it’s late at night on your end.

“Duties may require non-standard working hours, including nights, weekends, and holidays, without additional compensation.”
This statement clarifies that unconventional working hours aren’t an emergency, but you’re expected to be available almost all the time. The employer may present it as greater flexibility than a typical 9-to-5, but the truth is you’ll most likely be busy around the clock.

For more clarity about your pay prospects, check our article on pay transparency laws by state. 

“All inventions, developments, improvements, and works of authorship created during the period of employment…”
Because it doesn’t say “created for the company,” it basically covers all of the things you make or come up with while employed.

“...whether or not made or conceived during regular working hours, or using Company equipment, facilities, or trade secrets…”
The phrase “whether or not” strips away the boundary between your personal laptop/weekends and your employer’s office.

“Employee shall not engage in any other business activity, compensated or uncompensated, without prior written consent…”
“Uncompensated” in this case means that even something like volunteering technical advice to a non-profit or maintaining open-source projects requires formal agreement from your boss. 

Do I keep my personal creative work 100% physically separate from company laptops, company Wi-Fi, and work hours?

Is my side project or hobby closely related to the industry, clients, or technologies my employer deals with?

Do I plan to earn money, raise capital, or publish personal work while working here?

“Employee agrees to repay 100% of the Signing Bonus / Relocation Assistance if voluntary separation occurs within X months…”
If you were given a lump sum for relocation and then leave before time’s up, you’ll have to repay that money. But if it fits your plans, there’s no reason not to go for it.

“For a period of X months post-termination, Employee shall not directly or indirectly provide services to any competitor within an X-mile radius…”
If you plan to transition into a completely different industry, this non-compete won’t interfere with your next steps. But if you want to stay in the same field, this clause may not be for you. Though the enforceability of post-employment non-competes varies substantially by state, the Federal Trade Commission (FTC) warns that in some cases they can restrict worker mobility and wage growth.

“Notice of resignation must be provided X days in advance; failure to do so results in forfeiture of accrued benefits…” 
This clause suggests that you cannot resign and start a job in a week — usually, you’ll be asked to work for some time on top. In fact, you can resign without notice, but it can trigger consequences, like losing benefits. A lot of this depends on the type of job you have. If it’s something fast-paced, this clause just won’t let you get hired anywhere else. But if you’re in a senior role, extended notice periods are pretty common. 

“Employee shall be entitled to X paid vacation days per calendar year, accrued at a rate of X hours per pay period…”
If you prefer to gradually accumulate your guaranteed paid vacation days, you’ll want to have this clause in your contract. Although contractual PTO guarantees accrued time off, the U.S. Department of Labor notes that the Fair Labor Standards Act does not mandate payment for time not worked.

“Unlimited/flexible paid time off is provided, subject to prior manager approval and operational demands…”
Your ability to take time off depends entirely on your workload and your agreement with your manager. With this clause, you get schedule freedom that is not restricted as long as you get your work done.