Software Engineer Contract Analysis
Software engineer offers are competitive. Tech companies are aggressive on non-competes and IP assignment. This guide covers what to watch for.
Typical Software Engineer Comp
SALARY: $150-300k depending on level/location/company. BONUS: 10-20% of salary. EQUITY (STARTUPS): 0.1-1% depending on level. EQUITY (BIG TECH): RSUs worth $100-500k+ per year. SIGNING BONUS: $20-100k.
Engineer-Specific Red Flags
(1) IP ASSIGNMENT TOO BROAD: "All code belongs to us, including weekend projects." Red flag. (2) NON-COMPETE ON SIDE PROJECTS: "Can't work on anything vaguely related to our tech." Red flag. (3) NO OPEN SOURCE RIGHTS: "All contributions to open source require approval." Red flag. (4) INVENTION DISCLOSURE FORMS: "Must report all inventions." Common but make sure you understand obligations. (5) HIRING RESTRICTION: "Can't hire from our team for X years." Not directly your problem but culture flag.
Engineer-Specific Negotiations
(1) IP CARVE-OUT: "I own open-source projects and personal projects not related to company work." (2) SIDE GIG PERMISSION: "I can maintain open-source project X." (3) KNOWLEDGE BASE: "I can keep learning/studying independently." (4) CONFERENCE SPEAKING: "I can speak at tech conferences about general topics (not proprietary)." (5) PORTFOLIO: "I can show non-proprietary code samples to future employers." These are standard in tech; most companies agree.
Frequently Asked Questions
Can companies really prevent me from coding in my free time?
Not if code is unrelated to company work. But broad IP assignment tries to. Negotiate carve-outs for open source and personal projects.
Should I disclose my side project?
Usually yes. Most companies require disclosure forms. Hiding it is risky if discovered.
What if company claims ownership of side project?
If project is unrelated to company work, you can push back. "This is personal project on my own time, unrelated to [company work]." Get in writing if possible.
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