Starting your first job is exciting. It can also feel overwhelming. After weeks of applications, interviews, and waiting, receiving an offer letter may feel like the finish line.
But before you sign, take a moment to read the document carefully.
Your first job can set the tone for your career. Most new employees do not begin a job expecting to leave anytime soon. Still, many things can affect how long a position lasts, including the economy, company finances, workplace changes, new technology, layoffs, management decisions, and personal circumstances.
That is why it is important to understand not only what you are getting from the employer, but also what you may be giving up.
At Kerstein and Konowitz Law Group in Wellesley, Massachusetts, we help employees understand employment contracts, offer letters, non-disclosure/non-solicitation agreements, job descriptions, and related documents before they sign.
Is an Offer Letter the Same as an Employment Contract?
Not exactly.
Some new employees receive a formal employment contract. Others receive a shorter offer letter that lists the basics, such as job title, salary, start date, and benefits. Some employees may not receive either, but they may still be asked to sign related documents, such as:
- Non-disclosure agreements, also called NDAs
- Non-compete agreements
- Non-solicitation agreements
- Confidentiality agreements
- Invention assignment agreements
- Employee handbook acknowledgments
Even if a document looks routine, it may affect your rights during and after employment.
Understand Whether the Job Is At-Will
The default employment status in Massachusetts is “at-will.” This status only changes if an employee has a contract stating otherwise. In general, at-will employment means either the employer or the employee may end the employment relationship at any time, for almost any lawful reason.
This does not mean an employer can fire someone for an illegal reason, such as discrimination or retaliation. But it does mean that job security may be more limited than a new employee expects.
If your offer letter says your employment is “at-will,” pay attention. That phrase matters.
Review the Terms of Employment
Some employment agreements include a defined term, such as one year or two years. Others do not.
If there is a term, ask:
- Does the agreement guarantee employment for that full period?
- Can the employer terminate the agreement early?
- What happens if you resign before the term ends?
- Does the contract automatically renew?
- Are there penalties or repayment obligations if you leave early?
A term of employment may sound like protection, but the details matter.
Watch for a Probationary Period
Many employers include a probationary or introductory period for new hires. This might be 30, 60, or 90 days.
A probationary period may affect eligibility for benefits, paid time off, remote work, bonuses, or continued employment. It may also create confusion if the employee believes they have more job protection after the period ends.
New employees should understand what the probationary period actually means and what changes after it ends.
Understand Your Pay Structure
Your offer should clearly explain how you will be paid.
Look for:
- Hourly wage or salary
- Pay periods, such as weekly, biweekly, or semimonthly
- Commission or bonus terms
- Whether bonuses are guaranteed or discretionary
- Conditions for earning incentive compensation
- Whether any training period is paid differently
In Massachusetts, wage laws can be strict, and the timing of wage payments matters. Employees should make sure the offer clearly states the compensation they expect to receive.
Know Whether You Are Exempt or Non-Exempt
One of the most important issues in any offer letter is whether the employee is classified as exempt or non-exempt.
A non-exempt employee is generally eligible for overtime pay. An exempt employee is generally not eligible for overtime if the position satisfies certain legal requirements.
This classification is not controlled only by job title or salary. Duties matter too. For example, calling someone a “manager” does not automatically make them exempt.
New employees should understand:
- Whether they are expected to track hours
- Whether overtime is allowed
- Whether overtime must be approved in advance
- Whether the salary being offered is intended to cover all hours worked
- Whether the job duties match the classification
This issue is especially important for first-time employees who may not yet know what is normal or legally required in the workplace. Massachusetts’ non-compete law also treats non-exempt employees differently, as non-compete agreements are not enforceable against employees classified as non-exempt under the Fair Labor Standards Act.
Read the PTO and Vacation Policy Carefully
Paid time off can be more complicated than it looks.
Before signing, review:
- How much PTO or vacation time do you receive
- Whether time is available immediately or accrues over time
- Whether unused time carries over
- Whether there is a cap on accrual
- Whether unused vacation is paid out when employment ends
- Whether sick time is separate from vacation time
In Massachusetts, accrued vacation time is generally treated as wages and must be included in a final paycheck when an employee leaves employment.
That makes the wording of the vacation and PTO policy important. A generous-sounding PTO benefit may be less valuable if it accrues slowly, does not guarantee specific hours, or is subject to confusing conditions.
Make Sure the Job Description Matches the Job
A job description is not just a formality. It can help prevent future disputes.
New employees should look for clear expectations about:
- Job duties
- Reporting structure
- Work location
- Remote or hybrid work expectations
- Required travel
- Schedule
- Performance goals
- Physical or technical requirements
A vague job description can lead to misunderstandings later. If the employer expects duties that are not mentioned in the offer, it is better to clarify them before signing.
Be Careful With Restrictive Covenants
Restrictive covenants are contract provisions that limit what an employee can do during or after employment.
Common examples include:
- Non-compete agreements
- Non-solicitation agreements
- Non-disclosure agreements
- Confidentiality provisions
- Restrictions on using company information
- Restrictions on contacting clients, customers, or employees after leaving
These provisions can affect your next job, your professional network, and your ability to work in your chosen field.
Non-Compete Agreements in Massachusetts
A non-compete agreement may restrict an employee from working for a competitor or starting a competing business after leaving a job.
Massachusetts law limits the circumstances under which non-competes can be enforced. For example, Massachusetts law states that non-compete agreements are not enforceable against certain categories of workers, including non-exempt employees, undergraduate or graduate students in short-term employment, employees age 18 or younger, and employees who are terminated without cause or laid off.
Massachusetts law also includes specific requirements for non-compete agreements, including timing, consideration, and compensation requirements in many circumstances.
This is an area where state law matters. A friend in California may not be subject to the same rules as an employee in Massachusetts. California law generally makes contracts restraining someone from engaging in a lawful profession, trade, or business void, subject to limited exceptions.
Do not assume your rights are the same as your friends’ rights in another state.
Non-Solicitation Agreements Can Be Just as Important
Even when a non-compete is limited or unenforceable, a non-solicitation agreement may still create problems.
A non-solicitation agreement may restrict you from contacting or doing business with:
- Clients
- Customers
- Prospects
- Vendors
- Employees or coworkers
For some employees, especially those in sales, recruiting, clinical practices, client service, consulting, finance, or technology, a non-solicitation clause can be just as damaging as a non-compete.
Before signing, it is important to understand how the restriction would affect your next job if you leave.
Who Owns Your Work, Ideas, or Inventions?
Many employment agreements state that the employer owns work created during employment. This may include:
- Written materials
- Designs
- Software code
- Business processes
- Marketing materials
- Client lists
- Inventions
- Research
- Creative work
- Improvements to company products or systems
For many jobs, the company will own the work created within the scope of employment. But some agreements go further and may claim rights to ideas or inventions developed outside normal work hours.
This can be especially important for employees who freelance, write, code, design, invent, create content, or plan to start a business in the future.
Review the Employee Handbook
Some employees focus only on the offer letter and skip the handbook. That can be a mistake.
The handbook may include important policies on:
- PTO and sick time
- Remote work
- Discipline
- Technology use
- Confidentiality
- Social media
- Conflicts of interest
- Expense reimbursement
- Harassment and discrimination reporting
- Arbitration or dispute resolution
- Outside employment
If the offer letter says you agree to follow the handbook, make sure you read the handbook before signing the offer and the acknowledgment.
Your Offer May Be Different From Your Peers’ Offers
New employees often compare offers with friends, classmates, or coworkers. That can be useful, but it can also be misleading.
Employment terms may differ based on:
- State law
- Industry
- Job duties
- Compensation level
- Exempt or non-exempt status
- Experience level
- Access to confidential information
- Negotiating leverage
- Whether the role involves clients, sales, or intellectual property
Your offer may also differ significantly from what a more experienced employee receives. Certain restrictions may be more common in senior roles, while some restrictions may be unenforceable against lower-wage or non-exempt employees.
Do Not Ignore Documents Sent After the Offer
Sometimes the offer letter looks simple, but additional documents arrive later through an onboarding portal.
These may include agreements that affect your rights. Do not assume they are harmless because they are part of the onboarding process.
Before signing, look for language involving:
- Confidentiality
- Arbitration
- Class action waivers
- Non-competes
- Non-solicitation
- Intellectual property
- Return of company property
- Repayment of bonuses, relocation expenses, or training costs
The time to review these documents is before you sign, not after a dispute arises.
Questions to Ask Before Signing Your First Offer Letter
Before accepting a job offer, consider asking:
- Is this position at-will?
- Am I classified as exempt or non-exempt?
- Am I eligible for overtime?
- How does PTO accrue?
- Will unused vacation be paid out when employment ends?
- Are bonuses or commissions guaranteed or discretionary?
- Is there a probationary period?
- Am I signing a non-compete or non-solicitation agreement?
- What happens if I leave for another job?
- Does the company own the work I create outside of work?
- Are there handbook policies I should review before signing?
A good employer should be willing to explain the documents it asks you to sign.
Why Legal Review Matters Before You Sign
Many new employees are reluctant to ask questions about an offer. They may worry that asking for clarification will make them look difficult or ungrateful.
But signing an employment document without understanding it can create long-term consequences.
An attorney can help you understand:
- What the agreement means
- Whether the terms are common or unusual
- Whether any restrictions may limit future job opportunities
- Whether the agreement raises wage, overtime, or classification concerns
- Whether the terms may be negotiable
- Whether Massachusetts law affects enforceability
The goal is not always to reject the offer. Often, the goal is to understand the offer clearly and make an informed decision.
Speak With a Massachusetts Employment Attorney Before Signing
Your first job offer is more than a starting salary. It may affect your wages, benefits, future job opportunities, professional relationships, and ownership of the work you create.
Before signing an offer letter, employment contract, non-compete, non-solicitation agreement, NDA, or handbook acknowledgment, take time to understand what the documents mean.
Kerstein and Konowitz Law Group in Wellesley, Massachusetts helps employees review and understand employment agreements before they sign.