Employment Offer Review Checklist: What to Verify Before Accepting
Your Offer Letter Is a Contract
An employment offer letter or agreement defines the terms of your job. Reviewing it carefully before accepting can prevent surprises about compensation, restrictions, and your rights if the relationship ends.
Compensation
- Base salary amount and pay frequency are stated
- Bonus structure is defined (target amount, performance criteria, payment timing)
- Commission or variable pay terms are clear
- Start date is confirmed
- Pay increases or review schedule is mentioned
Benefits
- Health insurance coverage details and start date
- Retirement plan (401k) and employer match details
- PTO policy (vacation days, sick days, personal days)
- Remote work or hybrid schedule terms
- Parental leave policy
- Professional development budget or tuition reimbursement
Equity and Stock Options
- Number of shares or options granted
- Vesting schedule (commonly 4 years with 1-year cliff)
- Exercise price and window for exercising after departure
- Type of equity (ISO, NSO, RSU)
- Acceleration provisions on change of control
Restrictive Covenants
- Non-compete scope, duration, and geographic limits
- Non-solicitation restrictions (customers and employees)
- Confidentiality obligations and duration
- Invention assignment clause and carve-outs for personal projects
- Whether your state restricts or prohibits non-competes
Termination Terms
- At-will status is clearly stated (or term of employment if applicable)
- Severance provisions and conditions
- Notice period requirements
- What happens to unvested equity on termination
- Post-termination obligations (non-compete, confidentiality)
Other Terms
- Arbitration clause and class action waiver
- Governing law and jurisdiction
- Background check and drug testing requirements
- Conditions of employment (reference checks, start date flexibility)
When to Consult a Lawyer
Consider consulting an employment attorney if the offer includes a non-compete, significant equity grants, executive-level severance provisions, or any terms you do not fully understand. The cost of a brief legal review is small compared to the value of your employment relationship.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.