Offer Letters and Employment Agreements: Protect Yourself
What to Look Out For Before (and After) a Layoff
As market uncertainty continues to swirl and potential layoffs loom across industries, I’ve seen a surge in calls from friends and colleagues facing job instability. Whether it’s an unexpected termination, a looming demotion, or questions about severance, it’s clear that many are navigating these waters for the first time and often, without a map.
So this week, I’m channeling my “lawyer friend” energy into a crash course on employment rights: what to look for, what to ask, and why it’s so important to stay informed.
Let’s be honest, in the eyes of most corporations, almost everyone is expendable. The stability of fulltime employment can be more illusion than guarantee. That’s why it’s critical to understand your rights before things go sideways.
First rule: if you're negotiating terms or facing any adverse employment event, consult a lawyer. Your company almost certainly is. You should too.
Offer Letters: The Starting Point
Most U.S. employees are “at-will”, meaning your employer can terminate your employment at any time, with or without cause. While certain state protections vary, your offer letter is the foundational document that governs your rights and benefits when you start a new job.
Yes, it’s technically a contract, but it usually isn’t binding in terms of duration or continued employment. Instead, it focuses on initial terms and expectations.
Here are a few key things to watch for in your offer letter:
Title & Role: Ensure your job title and responsibilities are clearly stated and align with your understanding.
Equity: If you’re being granted stock options or RSUs, confirm the type, the vesting schedule, and the strike price.
Bonuses: If there's a performance or signing bonus, make sure it’s spelled out not just labeled as “discretionary.”
Employee Handbook: Ask for a copy. Anything not covered in the offer letter will typically default to broader company policies.
Employment Agreements: More Protection, But Fewer Have Them
If you’re one of the few with a formal employment agreement, your rights may look very different.
These agreements are usually reserved for executives or high-level roles, and they can offer significant protection if you understand and enforce them.
Look for:
Fixed Terms or Notice Periods: Some agreements require advance notice before termination.
Cause Definitions: A clearly defined list of termination “for cause” events can protect you from arbitrary dismissal.
Severance Provisions: Some contracts include guaranteed severance, with variations depending on how the relationship ends (e.g., termination without cause vs. resignation for good reason).
Restrictive Covenants: Many agreements include post-employment restrictions like non-competes, non-solicits, and confidentiality obligations. These can significantly affect your next move, so know what you’re signing.
Final Thoughts: Protect Yourself In Advance
While these documents may seem routine when you’re excited about a new opportunity, they become critical when things go south. Whether you’re just starting a role or facing an exit, don’t rely on assumptions or goodwill, rely on clarity and consult with legal counsel.
It’s never too early or too late to protect yourself. If you're unsure where to begin, consult with counsel to help navigate your options, connect you to resources, or review what’s on the table.
Because when it comes to your job, your future, and your peace of mind, you deserve to be informed and protected.
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This post is for informational purposes only and does not constitute legal advice.