Before signing, confirm who your legal employer will be, which existing documents will remain in force, what happens to your pay, benefits, equity and service credit, and whether the new package adds restrictions or asks you to release claims. Get the complete agreement and every document it incorporates, then compare the written terms with what you have now. This checklist is U.S.-oriented; the answer can change with your location, contract, and transaction structure, and it is not individualized legal advice.
What should you get before you sign?
Ask for the complete proposed agreement and all documents it refers to or incorporates. A promise in an offer letter may be governed by a separate plan or policy, so read the documents together rather than treating the offer letter as the whole deal.
- The employment agreement, offer letter, and any side letters.
- Applicable handbook, compensation and bonus plans, and benefits-plan documents.
- Equity plan documents, award agreements, and transaction-specific notices or agreements.
- Any release, confidentiality agreement, invention-assignment agreement, or restrictive-covenant document you are asked to sign.
New York Attorney General guidance advises workers to read and understand every document an employer asks them to sign and notes that a contract can be negotiated. Ask for time to review the full set before accepting; do not rely on a summary of terms when the controlling documents are available.
Who will employ you, and what happens to your current agreement?
Identify the employer and the effective date
Ask for the employing entity’s full legal name, its location, and the date the new terms take effect. Confirm whether you will work for the buyer, a parent, or another affiliate; a familiar brand name is not a substitute for identifying the legal employer.
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Find out what is replaced, retained, or ended
Ask whether signing supersedes your existing offer letter or employment agreement, and whether any confidentiality, invention-assignment, or other document continues separately. Have the new agreement identify which prior documents are replaced and which obligations survive. Ask directly whether signing also constitutes a resignation from the acquired company or otherwise ends your existing employment relationship.
“Acqui-hire” does not by itself determine whether employment continues or restarts. Transaction mechanics and applicable transfer law matter, and there is no single answer established for every U.S. acqui-hire.
What are the complete pay and work terms?
For each item, ask which signed document controls, when the term starts, and what conditions can change or end it. Keep one-time transition or retention payments separate from recurring compensation and note their payment dates and conditions.
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| Term | What to confirm in writing |
|---|---|
| Base salary | Amount, effective date, pay frequency, and any conditions or scheduled changes. |
| Bonus or commission | Eligibility date, formula, performance measures, discretion, payment timing, and treatment if you leave or are terminated before payout. |
| Benefits and leave | Which plans apply, eligibility dates, leave rules, and whether accrued balances or prior service are credited. |
| Role and work arrangements | Title, duties, reporting line, work location, and employment status. |
| Severance or transition payment | Amount or formula, payment date, conditions, and whether it depends on signing a separate release. |
Request the relevant handbook, plan, or policy before agreeing to a term that depends on it. If another arrangement is available, compare guaranteed cash, variable pay, benefits, termination protection, equity risk, and any rights surrendered—not headline salary alone.
What happens to your equity and prior service?
Get an award-by-award accounting
Ask for a written accounting of vested and unvested awards, options or shares, any exercise windows, and the treatment of each award in the transaction. Confirm whether awards will be converted, canceled, or left outstanding, and request the plan, award agreement, and transaction-specific documents that govern the outcome.
Check any new grant and service-credit rules
For a new award, confirm its amount, vesting start date, schedule, cliff, and any conditions. Separately ask whether service with the acquired company counts toward benefit eligibility, vesting, paid leave, or severance, and whether accrued balances transfer. Do not assume equity accelerates, carries over, or restarts on a particular schedule; the deal and plan documents determine what happens.
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A different rule may apply in a covered UK transfer: government guidance on TUPE describes continuity of employment and protections for existing terms. That UK-specific regime is not a general answer for U.S. employees.
What restrictions or new obligations does the agreement add?
Compare the new language with your existing agreements. For each restriction, identify the covered activity, people or entities, duration, geographic scope, exceptions, and consequences of breach. Check whether it would apply if the employer terminates you without cause.
- Noncompete and customer or employee nonsolicitation terms.
- Confidentiality and invention-assignment obligations.
- Nondisparagement, repayment, and dispute-resolution provisions.
The New York Attorney General advises workers to ask whether they must sign a noncompete, read it, and consider negotiating its terms. Its guidance says: “No law requires you to sign a noncompete, but an employer is allowed to ask you to sign one before or after you start work.” That statement is presented in New York guidance and should not be treated as a rule for every state.
As of the Federal Trade Commission’s current status page, its Noncompete Rule is not in effect and is not enforceable; the page also reports the agency’s September 2025 move to dismiss its appeal. Do not treat the rule as a nationwide ban currently in force. State law still matters: for example, Massachusetts General Laws §24L sets requirements for covered noncompetition agreements and excludes several categories from its statutory definition. Whether a particular clause is covered or enforceable depends on applicable law and the agreement.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Does the package ask you to release claims?
If you are offered severance or another payment in exchange for a release, identify the new value you receive and the conditions for payment. Check any signing deadline, revocation period, and compliance conditions in the actual document; timing and release terms depend on the circumstances.
Read what claims the release says it covers, including whether it purports to reach future claims, vested plan benefits, or rights that cannot be waived. EEOC guidance says an agreement should not bar you from filing a charge or from testifying, assisting, or cooperating with the agency. If a significant claim or substantial consideration is involved, have an employment lawyer review the release and the underlying agreement before you decide.
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Is a layoff or notice issue possible?
Ask whether layoffs are expected, whether the acquired business will be integrated or closed, and which entity would provide any required notice. Under the U.S. Department of Labor’s WARN Advisor, for WARN purposes the seller is responsible for notice if a covered termination or layoff occurs before the sale, and the buyer is responsible if it occurs afterward.
That allocation does not establish that WARN applies to your situation. Coverage depends on facts such as the employer, number of affected employees, timing, and location; state mini-WARN laws may raise separate requirements.
How should you make the decision?
Build a side-by-side comparison of the current arrangement and the proposed one using the signed documents, not verbal assurances. Record each unresolved question beside the document or provision that should answer it.
- Which terms are guaranteed, and which depend on a plan, performance measure, or employer discretion?
- What service, benefits, and accrued balances carry over, and what starts over?
- What equity value or vesting could be lost, changed, or delayed?
- What termination protection or payment is actually promised?
- What restrictions or claims release are you accepting in return?
Ask that any negotiated clarification or promised term be included in the signed agreement or an attached signed document. Because the answer depends on the governing law and exact documents, independent employment-law counsel can review the new agreement alongside your prior agreements, equity documents, and any release.
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