Automated Legal Risk Scoring • Gemini 3.8 Flash AI

Know What You Are Signing: AI Employment & Non-Compete Auditor

Audit employment agreements for unfair geographic non-competes, pre-invention IP seizure, and one-sided termination terms.

Critical Traps in Standard Employment & Executive Agreement Templates

These common clauses routinely slip past non-lawyers and expose organizations to six-figure liabilities.

Overbroad Non-Compete Covenants

Critical Risk

Restricting employment across entire industries or global geographies for years after departure.

Total IP Assignment of Personal Projects

High Risk

Claiming ownership of software or creations developed on personal time with personal equipment.

Unfavorable At-Will vs For-Cause Definitions

High Risk

Allowing the employer to withhold bonuses or equity vesting based on vague performance dissatisfaction.

Mandatory Binding Arbitration & Fee Shifting

Medium Risk

Forcing employees into private arbitration while waiving class actions and shifting defense costs.

Live AI Demonstration

How ContractGuard AI Redlines This Clause

Original Contract Excerpt

“Employee agrees not to engage directly or indirectly in any business competing with the Company anywhere in North America for a period of twenty-four (24) months following termination. Company owns all inventions conceived during the period of employment.”
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HIGH RISK
Score: 86/100
Detected Liability Imbalance:

Excessive geographic and temporal non-compete scope combined with an overbroad invention assignment lacking personal project carveouts.

AI Remediation & Redline:

Narrow restriction to direct solicitation of active clients within 12 months, and add statutory carveouts for personal off-hours inventions.

Frequently Asked Questions About Employment & Executive Agreement

Answers to legal and operational questions about risk detection and protection.

Are non-compete clauses legally enforceable?

Many jurisdictions (such as California and FTC rules) have banned or severely curtailed non-competes. ContractGuard AI flags whether your clause exceeds standard reasonableness.

Does my employer own side projects I build on weekends?

Only if your contract lacks a clean personal invention exclusion. You should always attach a "Schedule of Prior Inventions" to reserve your rights.

What is a typical severance package for tech roles?

Standard packages range from 1 to 3 months of base pay per year of service, plus COBRA health coverage continuation.

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