4 Employment Law Tips for New Businesses

Before starting a new business, you have probably carried out extensive research on what you need. If you are working with people under your employment, you must understand the basic employment tips in your sector. Fortunately, a lot of what you need can be easily accessed through your employment lawyer. Below are some of the things you need to know.

1. Know the Difference between an Employee and an Independent Contractor

Most companies will opt to work with independent contractors because of the reduced overhead costs. Employers are not obligated to comply with the hours and wage requirements they would have to when dealing with an employee. The employer will also not have to part with medical insurance or workers’ compensation when they hire independent contractors. However, the mistake most employers make is to classify employees as independent contractors when they are employees.

In most cases, this often leads to expensive litigation. The independent contractor offers services that are distinct from what your business does. These contractors will also use their won tools, and will often bring specialized skills. On the other hand, employees will use the employer’s tools, follow the employer’s schedule to complete work, and will depend on the company’s direction on how the task should be completed. Hiring the right legal expert can help avoid mistakes. For additional resources, you may be able to learn more information from Levitt LLP.

2. Trade Secrets should be Kept Secret

Whatever you do that makes your company stand out should be kept secret. Any employment lawyer will advise you to keep all your formulas, programs, techniques, compilations, processes, and patterns secret as long as it has economic value. Anything you developed that passes as a trade secret should be kept away. Have your employees sign a confidentiality agreement that prohibits them from disclosing sensitive information even after leaving the company.

3. Understand the Fair Labor Standards

Aspects such as the minimum wage should be understood from the word go. Know what you are expected to do by law whenever employees exceed working hours. While at it, know which exemptions exist to this law to avoid making losses. Failing to understand these laws can easily put the company’s financial stability at risk.

4. Know what you Must Do When Terminating Employees

Legally, no employer can decide to fire their employees without justifiable reasons. There are laws and policies that a company must come up with to guide the grounds for termination. Whatever reasons are cited as reasons for termination must be backed by policies that the employee agreed to when being hired. This will help you as a business owner, avoid claims of discrimination whenever you have to terminate an employee. Make sure that there is no room for debate even when court cases are involved.