As an owner of a business that is just starting out, you are the wearer of many hats. In all the rush of running a start-up, you might end up forgetting one crucial aspect of any business – employment law.
There are a few laws that govern your relationship with the people that you employ and the ones that you give contracts to. Visit the homepage to look at the various employee protection legislations. Let us look at the various laws that each start-up needs to know.
Understand the Difference Between an Employee Vs an Independent Contractor
Some companies prefer hiring independent contractors as opposed to employees. This reduces their overhead costs, and because they don’t have to comply with wage per hour requirements or medical insurance, they end up with fewer costs. However, employers end up classifying employees as contractors to avoid some costs, which in turn puts the company in line for costly litigation.
Make sure you understand the proper way to classify the workers.
Keep Your Secrets Locked Up
The information that you use to run your business or come up with products is supposed to be kept a secret all through. This includes customer lists as well as process methods that you use. Make sure you keep the information in a password protected place, only disclosing it when it needs to be known.
You need to make sure all your employees sign confidentiality agreements, and they promise not to disclose any information at all.
Know Which Employees to Exempt
The exempt employees are those that aren’t run by overtime laws. These are mostly those employees that include professionals and executives. Make sure you classify these employees the right way by coming up with well-thought-out job descriptions.
Have Workplace Policies and Procedures
Make sure you have well-drafted company policies that govern how the various systems in the company are run and used. The policies and regulations that you come up with need to restrict any access to confidential information. Tell your employees what you need them to do and what systems are out of their reach.
Your employees need to be monitored, and access to different systems managed the right way. Take time to understand the type of systems you have allowed your employees to access, and make sure they do what you have come up with through the use of confidential agreements that the employees sign.