Understandably, entrepreneurs’ main concerns are shipping great products and making sure they can meet the next payroll. As your company grows, regardless of what industry you are in, tech, biotech, or a restaurant, it is critical that the founder devote some time and effort into ensuring employment law compliance. Investors will demand this during the
startup company
Friday’s Five: Five legal pitfalls startup companies cannot make
1. Classifying all employees as independent contractors
To qualify as an independent contractor, the employer has the burden of proof to establish that the worker is actually an independent contractor and not an employee. I’ve discussed the parameter of this “economic realities” test here. In addition to owing unpaid minimum wages and potential unpaid…