Employment Contract Analysis

Before you sign your job offer, let Clausy's AI spot non-competes, IP assignment clauses, and unfair termination terms—in minutes.

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What We Check in Your Employment Contract

Clausy analyzes the clauses that matter most to employees

Non-Compete Scope

The Federal Trade Commission estimated that about 30 million workers, roughly 18% of the U.S. workforce, are currently bound by a non-compete.[1] That's a lot of people whose next job options are shaped by a few sentences buried in a contract. We look at the geographic reach, duration, and industry scope to flag clauses that go too far.

IP & Inventions Assignment

Does your employer claim ownership of your side projects? We identify inventions assignment clauses that could extend beyond work-related activities into your personal creative output.

Termination Conditions

At-will employment, for-cause definitions, notice periods, and severance provisions are all reviewed. We flag contracts that heavily favor the employer in termination scenarios.

Common Red Flags in Employment Contracts

These are the patterns Clausy is trained to catch

Overbroad Non-Compete

The FTC estimated in 2024 that non-competes hold back worker earnings by $250 to $296 billion every year.[1] A clause that locks you out of your entire industry, nationwide, for two or more years goes well beyond what any employer has a legitimate reason to demand. We flag these.

At-Will with No Severance

Employment contracts that are entirely at-will with no severance provision mean you can be let go at any moment with no financial safety net. We flag contracts that provide no transitional protection.

Vague Bonus Language

Bonus clauses that say amounts are "at the sole discretion of management" with no defined criteria make bonuses essentially unenforceable promises. Clausy flags discretionary compensation with no objective triggers.

How It Works

Three simple steps to safer contracts

1

Upload Your Contract

Drop a PDF, DOCX, or image scan, or paste the contract text. We accept freelance agreements, employment contracts, prenups, NDAs, leases, and more.

2

AI Analysis

Our AI analyzes your contract, calculates risk scores, and highlights potential issues based on common contract patterns.

3

Get Your Report

Receive an AI-generated analysis with potential red flags, clause explanations, and educational suggestions.

Frequently Asked Questions

What should I look for in an employment contract?

Key things to review include: compensation and bonus structure, non-compete and non-solicitation scope, IP and inventions assignment, termination conditions (at-will vs. for cause), severance provisions, and any arbitration clauses that waive your right to sue in court.

Are non-compete agreements enforceable?

Enforceability varies significantly by state. California generally does not enforce non-competes. Other states enforce them only if reasonable in scope, geography, and duration. An AI analysis can flag overbroad non-competes, but a local employment attorney can advise on enforceability in your specific jurisdiction.

What is an inventions assignment clause?

An inventions assignment clause requires you to assign IP you create during your employment—and sometimes outside of work—to your employer. Broad versions can claim ownership of personal side projects. Many states provide statutory exceptions for inventions created entirely on your own time with no company resources.

Can I negotiate my employment contract?

Yes. Most employers expect some negotiation, especially on compensation, equity, start date, and sometimes non-compete scope. An AI analysis can help you identify which clauses are most negotiation-worthy before you have that conversation.

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Sources & Research

  1. Federal Trade Commission. "Non-Compete Clause Rule." April 2024. ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetes

Important Legal Disclaimer

Clausy provides informational analysis only and does not constitute legal advice. Results are generated by artificial intelligence and should not be relied upon as a substitute for consultation with a qualified attorney. Always consult a licensed legal professional before making decisions based on contract terms.