When considering a new job offer, it is important to review the employment contract before signing it. An employment contract is a legal document that outlines the terms and conditions of your employment, including compensation, job responsibilities and benefits. However, not all employment contracts are equal, and some may contain clauses that harm your interests.
Here are four red flags to watch for in an Indiana employment contract.
1. Non-compete clauses
Employment contracts may include a legal agreement that restricts employees from working for a competing company after leaving their current job. Non-compete clauses are legal in Indiana but are subject to specific restrictions. You will want to look over a non-compete clause and ensure it is reasonable. A non-compete clause that is too broad or limits your ability to work in your field for an extended period is unenforceable.
2. Confidentiality and non-disclosure clauses
Confidentiality and non-disclosure clauses prohibit employees from disclosing confidential or proprietary information about their employer or clients. While common in employment contracts, these clauses can be overly broad and limit an employee’s ability to discuss workplace issues or seek employment elsewhere in the future.
3. Limitations on severance pay and benefits
Employment contracts may limit an employee’s entitlement to severance pay or benefits in the event of termination. For example, the contract may require a minimum work period before qualifying for severance pay or limit the amount of severance pay an employee can receive. Peruse these clauses carefully and ensure they are reasonable and comply with Indiana employment laws.
4. Wage and hour provisions
An employment contract should outline an employee’s salary, benefits and compensation. However, some contracts could include clauses that reduce an employee’s ability to receive overtime pay, require unpaid work or limit paid vacation or sick leave. If the contract does not comply with the law, you may have legal grounds to challenge it in court.
Employment contracts are legally binding and can significantly impact an employee’s career and financial well-being. Protect your interests and make sure you have a fair and reasonable employment contract.