How to Read a Job Offer Letter: What to Check Before You Sign

Most people sign offer letters in under an hour. Here's what to actually read, what to negotiate, and what could cost you later.

By JobPost Team · Jun 18, 2026 · 6 min read

An offer letter is a legal document. It defines what you're agreeing to, what the company is agreeing to, and what happens if either side doesn't follow through. Most candidates read it quickly and sign. That's a mistake.

Here's what to actually check before you accept.

The Core Compensation Terms

Base salary: Confirm the number, pay frequency, and whether it's reviewed annually. "Annual review" in the offer letter doesn't guarantee a raise — just a conversation.

Start date: Leave yourself enough time. Two weeks notice is standard, but complex roles or senior positions may need 3–4 weeks. Don't shortchange your last employer just to hit a start date.

Signing bonus: Check if it has a clawback provision. Many signing bonuses require repayment if you leave within 12–24 months. The repayment may be prorated or full — read it carefully.

Equity Terms

If the offer includes equity, the letter should specify: - Number of shares or options - Grant type (RSUs or options) - Vesting schedule and cliff date - For options: strike price and current 409A valuation

If these details aren't in the offer letter, ask for an equity summary document before signing. See equity compensation for a breakdown of what each term means.

The Employment Terms

At-will employment: Most US offer letters include an at-will clause — either party can terminate employment at any time. This is normal. Don't be alarmed.

Non-compete agreement: Check if the letter references one. Non-competes are unenforceable in some states (California, Minnesota, others) but can affect what you're allowed to do after leaving in others.

NDA: Nearly all offer letters include NDA provisions. Standard. Just make sure it doesn't include unusually broad language about work you do outside the company.

Intellectual property clause: Most companies claim ownership of anything you build that's related to their business. This matters if you have side projects, open source work, or freelance clients.

What's Negotiable After the Number

Once you've accepted or negotiated the headline number, you can often still negotiate: - Start date - Sign-on bonus (especially if you're leaving unvested equity) - Remote work terms - Title - Equity grant size or vesting terms

The window for negotiation closes when you sign. Take 24–48 hours to review any offer before responding.