Starting a new job can be both exciting and nerve-wracking at the same time. Not only do you need to learn your role and responsibilities, it’s important that you understand the various aspects of the company and team you work with.
A properly drafted employment agreement should provide that information, along with the company’s expectations of you, and what you should expect from the company. Every organization is different, but key components should be in every agreement.
1. Job responsibilities
Even if your responsibilities were discussed during your interview, they should also be outlined within the employment agreement. This helps to avoid misunderstandings and sets a baseline for your supervisor to conduct performance evaluations
2. Compensation
Your agreement should include your compensation, including your salary, bonuses and any other forms of payment you may receive. This section should specify how often you will be paid and the criteria for bonuses or raises.
3. Benefits
An employment agreement should inform you of the benefits you are entitled to, including health insurance, retirement plans and paid time off. It should also include any other perks, such as discounts, gym memberships, educational opportunities and tuition reimbursement.
4. Termination
Ohio is an at-will employment state, meaning that either party can terminate the employment at any time unless there are certain conditions in the employment agreement. This section should include how many weeks’ notice you’re required to give, and reasons the company can immediately terminate your employment.
Some companies may include a non-compete clause in their employment agreement that would prevent you from working for a competitor for a certain period after your employment ends. However, there is a lot of controversy around this type of clause. In April 2024, the FTC issued a nationwide ban on non-compete agreements. On August 20, 2024, the FTC received a court order to stop them from enforcing the ban. The FTC is currently appealing that order.
Your employment agreement carries many crucial details. Therefore, you need to thoroughly understand its terms before signing. If there is anything you are unsure about, it’s okay to ask for clarification. This will prevent any unpleasant surprises down the road.