In this difficult economy, receiving a job offer is usually a cause for great celebration. For an executive, it can take months or longer to find a position that is truly a perfect fit. However, even after finding that supposedly perfect fit, many executives contact us because of the problems that quickly arise after they accept an otherwise promising job offer. Those job offers themselves frequently foreshadow the problems that the executive then goes on to experience on the job. Here are six job offer signs that, in our experience, do not bode well for a long, productive, and mutually rewarding employment relationship:
1. The job offer is overly vague or aspirational about job duties
When you are offered a job, demand to see a specific job description,
if available. We have seen situations where an employee makes assumptions
about what his or her job duties will be based upon the job title alone,
and then becomes disappointed when the job does not meet expectations.
If the employer is unwilling or unable to give you a written job description,
or at least a very specific verbal description of your job duties, this
could be cause for concern.
2. The job offer includes vague promises for additional compensation in
the future
Avoid agreeing to accept a position with substantially lower pay than
you would otherwise expect in exchange for some vague “promise”
to provide you with unknown additional compensation in the future. We
have seen situations where an employer makes a promise to an employee
to the effect of, “we cannot afford to pay you very much now, but
we promise we will consider giving you a substantial raise after our business
gets off the ground.” Such promises are likely unenforceable in
court, and you may find yourself in a position where you spend years working
for an employer at a discount, never to receive the promised rewards that
you anticipated at the beginning of the relationship.
3. The company’s future ownership or management structure is uncertain
We have frequently seen the following scenario: an executive gives up
a lucrative job in order to work for another company that has made attractive
promises about the working environment. At first, the executive loves
the new job. Then, just six months after starting, the company is sold
and new management takes over. Suddenly, the working environment completely
changes, and the executive begins to wish that he or she had never given
up the previous job. In light of the above, it is always wise to question
whether the ownership and management structure of your potential employer
is stable. For workers who sign employment agreements, “change in
control” provisions can help protect an employee against just this
very scenario.
4. The job offer is contingent upon acceptance of an outlandish non-compete provision
For many executives, employers make the job contingent upon the executive’s
acceptance of a non-compete provision. A non-compete provision restricts
the executive’s ability to continue working in his or her field
for a certain period of time in a certain geographic area after the separation
of employment. While many employers overreach and demand that executives
agree to non-compete provisions that are ultimately unenforceable, litigation
over a non-compete provision can be extremely expensive and time-consuming
for an executive. For this reason, if you are presented with a job offer
that contains a non-compete, you should seriously consider whether the
provision’s restriction on your ability to earn a living in the
future is actually worth accepting that particular job now.
5. The job offer contains onerous arbitration or prevailing party fee provisions
In the “honeymoon period” of a new job, most executives do
not think about the prospect of future litigation with an employer. However,
in order to protect yourself and your future legal interests, it is wise
to closely examine whether your job offer requires you to limit your legal
options for proceeding against your employer in any way. Many job offers
require employees to agree to submit any future legal disputes to arbitration,
which can greatly limit the remedies you may otherwise be able to obtain
in court. Other job offers contain prevailing party fee provisions, which
require the unsuccessful party at trial or arbitration to pay the attorneys’
fees of the other party. These provisions can be particularly onerous
to employees, and should only be considered with great care.
6. The job offer includes an onerous “sign-on bonus” or loan provision
In many cases, an employer may provide an employee with a “retention
bonus,” a “sign-on bonus,” or some form of up-front
compensation in exchange for the employee’s acceptance of a job
offer. Most of the time, there is a catch to these provisions –
if the employee leaves the job before a certain period of time has elapsed,
he or she must pay back the bonus. Sometimes, this pay-back period can
extend for years. These bonuses can provide an excellent and helpful incentive
to employees. However, if you are in a position where you will immediately
need to spend your sign-on bonus and will not be able to easily pay it
back in the future, you should realize that you are significantly limiting
your options by accepting the bonus and taking the job.
The decision of whether to accept a job can be a multi-faceted one. Particularly if your employer presents you with an employment agreement or contract, it is a decision that you may wish to discuss with an attorney. If you have a question about a job offer or employment agreement that you have received, please contact us.