An employment offer letter is not a formality — it's a contract that defines your rights for years. Most people spend more time negotiating salary than reviewing the legal terms that govern their intellectual property, their ability to leave, and what happens to their equity. Scrutr reads every clause in under 60 seconds.
Invention assignment: can your employer own your side projects?
Invention assignment clauses require employees to assign ownership of inventions to their employer. Overbroad invention assignment language — particularly common in tech industry offers — can capture not just work you do for the company, but anything you create outside of work hours, on your own equipment, unrelated to the company's business. California, Delaware, and a handful of other states have laws limiting the scope of invention assignment. Scrutr flags overbroad invention assignment language and identifies whether your state may limit enforceability.
Non-compete and non-solicitation clauses
A non-compete clause restricts where you can work after leaving the company. A non-solicitation clause restricts your ability to recruit former colleagues or approach former clients. The enforceability of non-competes varies enormously by state — they're largely unenforceable in California, and the FTC has moved to limit them federally. However, even an unenforceable non-compete creates risk: the threat of litigation itself has a chilling effect. Scrutr flags non-compete duration, geographic scope, and the industry or role restrictions that would apply to you.
Equity and vesting: what happens if you leave early?
Standard equity vesting is a four-year schedule with a one-year cliff — meaning you receive nothing if you leave before your first anniversary, and vest monthly or quarterly thereafter. Scrutr flags unusual vesting schedules, cliffs longer than one year, and single-trigger versus double-trigger acceleration provisions. Single-trigger acceleration vests your equity on acquisition; double-trigger requires both acquisition and termination — which is significantly less employee-friendly. These terms can represent tens of thousands of dollars in outcomes.
At-will employment vs. termination for cause
At-will employment means either party can end the employment relationship at any time, for any reason (subject to anti-discrimination law). Most US employment is at-will. Some offers — particularly for senior roles — include termination-for-cause provisions that limit when the company can fire you, or severance provisions that guarantee payment if they do. Scrutr identifies what termination protections, if any, your offer letter contains.