Armstrong & Associates Employment Law Firm

What are red flags in an employment contract?

An employment contract can be a good thing that provides you with job stability. It also ensures that you understand the job expectations and duties. 

However, employment contracts can also be harmful depending on the conditions and terms contained within. Business Insider suggests that you watch out for red flags that show the contract is not going to be beneficial to you. 

Unexpected contract

If your employer brings you a contract to sign once you are already working without much explanation, this is a concern. If the contract offers you nothing in return for signing it, then it is not a wise idea to sign it. It is likely a move for the employer to prevent legal action due to something currently occurring. 

Non-compete issues

Non-compete clauses are legal, but they are often difficult to uphold. If your contract has one, make sure that it does not have a long validity term or that it would prevent you from finding work in your field after you leave the company. 

Claims limits

Your contract will often state how long you have to make a claim or dispute anything. You need to be sure the limits align with the law. A short limit is detrimental to you, and you do not want to sign a contract with an unreasonably short claim limit. 


A contract should always be specific. You should ask for clarification on anything that seems too broad. Never sign a contract with broad terms without having additional clarification added. It makes it too easy for your employer to make changes or claims later that the broad terms did not specify. 


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