1 in 3 U.S. Workers Miss Key Contract Terms Despite 72% Claiming Close Review
Updated
Updated · HR Dive · Jun 16
1 in 3 U.S. Workers Miss Key Contract Terms Despite 72% Claiming Close Review
1 articles · Updated · HR Dive · Jun 16
Summary
57% of surveyed Americans said they fully read their most recent employment contract before signing, yet nearly 1 in 3 said they were unaware of key provisions in it.
23% knew their contract included a noncompete, 13% recognized mandatory arbitration or nonsolicitation clauses, and just 10% were aware of IP assignment language.
18% said not fully reading employment contracts led to negative consequences; among those affected, 48% lost more than $500 and 13% lost over $2,500.
17% said they stayed in a job longer than they wanted because they missed exit terms, and another 17% reported losing money, intellectual property or facing another penalty.
94% said contracts should be required to open with a plain-language summary of key terms, reflecting broad frustration as scrutiny of noncompetes and workplace NDAs continues.