A job candidate with highly sought-after skills, advanced education, and significant experience is strongly advised to have an employment law attorney review (and often negotiate) their employment contract (or offer letter) before signing on with a new employer. This is especially true if the role involves complex compensation (e.g., bonuses, equity, and commissions), restrictive covenants/non-compete agreements, or certain responsibilities.
Many executives, CEOs, and other high-level professionals routinely hire employment lawyers to review and negotiate contracts. Employers often expect it as it signals seriousness while protecting the executive against unfavorable terms. Employment lawyers are frequently involved in employment contract negotiations that include complex pay, equity, severance, and post-employment restrictions.
Key Terms in a Well-Negotiated Contract
A skilled employment lawyer focuses on balancing protections while exercising their clients leverage. Critical areas to scrutinize and negotiate include:
Compensation and Benefits: Base salary, bonuses (including guarantees, accelerators, and claw backs), equity/RSUs/stock options (vesting schedules, acceleration on termination), commissions, perks, and relocation.
Termination and Severance: For cause vs. without cause definitions, notice periods, severance pay (often 6–12+ months for executives, sometimes tied to non-compete duration), COBRA/health continuation, and accelerated vesting of equity. Garden-leave pay (continued salary while restricted) can offset restrictions.
Restrictive covenants:
Non-compete agreements must be reasonable in duration, geography, and scope. Some states/federal rules limit or ban them for certain workers—negotiate narrower language or extra pay to make it enforceable.
Non-solicitation (of clients/employees) and non-disclosure/confidentiality: These should protect legitimate business interests without overly broad bans.
Job duties, title, and reporting: Clear description so employee is not assigned unrelated work.
Dispute resolution, governing law, and indemnification: Arbitration vs. court, which state’s laws apply, and who covers legal fees.
Other: Intellectual property ownership, moonlighting policies, and “entire agreement” clauses (which can override prior verbal promises).
An experienced employment lawyer will review the contract and propose edits. The candidate can approach their prospective employer independently with the information or the attorney can negotiate directly with the employer to tighten the terms and improve compensation.
Contact an Experienced Employment Contract Attorney
Working with an experienced employment attorney to ensure an employment contract is ironclad is a smart investment. This is especially true if a candidate is leaving a current role or the contract has high-value or restrictive elements. When you have questions regarding employment contracts, severance agreement, non-compete agreements or another employment related matter, contact the employment law offices of Alan C. Olson & Associates for answers at 262-785-9606.
