It can be very exciting to start a new business. However, in the rush of things, it can be very easy to forget the legality of a few things. There are a few traps that you can easily succumb to that can lead to litigation if you are not careful. With that being said, here are two very important employment law tips that you need to follow as you embark on this exciting journey of becoming a startup business owner:
Tip #1: Understand the Difference Between Employees and Independent Contractors.
It isn't uncommon for companies to make the decision to hire independent contractors instead of employees. This often helps to reduce overhead costs since medical insurance and worker's compensation are not required and there are no wage and hour requirements, which is helpful to startups. However, the problem comes in when companies classify employees as independent contractors to bypass employee obligations. This puts their startup at risk for litigation, which can get very costly.
Therefore, as a startup business owner, it is crucial that you understand how to distinguish an independent contractor from an employee.
Tip #2: Make Sure You Have a Non-Disclosure/Confidentiality Agreement.
As a general rule, businesses succeed because of a unique idea – some type of device, program, technique, or process. If this idea gets out to the general public, anyone can sweep it up and claim it as their own. It is important that you protect all of your information with passwords and so on, but you also have to think about your employees. This is where a non-disclosure/confidentiality agreement comes into play, which would require employees/independent contractors to promise to never disclose the company's trade secrets by signing it.
If you have any questions regarding the legal aspect of starting your business or any employment law concerns, don't hesitate to reach out to an experienced employment and labor law attorney in your area like Mohajerian A Professional Law Corporation.Share
6 June 2017
Many people assume that when they file Chapter 7 bankruptcy, they will have to give up their homes and other property. This is not necessarily the case. I am a bankruptcy attorney, and I have helped many clients file for Chapter 7 bankruptcy without giving up homes, cars, and other property. When you file for bankruptcy, the property you are allowed to keep depends on your individual circumstances and the state where you live. Most states allow exemption for property you are currently paying for. This blog will guide you through that information and help you determine if filing Chapter 7 bankruptcy is the right choice for you.