Privacy, Business and Law

One way to avoid the expense and hassle of managing employees is not to hire any of them. Instead, use consultants to fill all labor needs. Use of consultants avoids the need to pay payroll taxes, overtime premiums, health insurance, and allows companies to avoid liability for employment discrimination, harassment and workers’ compensation. (Read more…)

It is a common and accepted practice for cash-starved start-ups to attract talented employees by offering substantial numbers of stock options as an alternative to high salaries and bonuses. However, many company founders, in their haste to attract qualified employees, do not give sufficient thought to the long-term consequences of large stock option grants. (Read more…)

Employees of technology-based companies tend to be relatively young, and these companies usually shy away from strict, hierarchical management structures. It is easy for executives of these companies to have a false sense of security when it comes to discrimination and harassment problems. The typical harassment scenario of the stuffy, older male executive “hitting on” his young female secretary seems impossible in the hip, high-tech world. (Read more…)

Many people involved in high-tech start-up companies are fairly sophisticated about copyright and patent protection, and seek legal advice on those issues early in the development of a product or idea. However, there is a large category of critical information that is not patentable or subject to copyright protection that can and should be protected from misappropriation and misuse by current and ex-employees. (Read more…)

Keeping track of employee attendance can be an administrative nightmare. The problem is particularly acute when employees work off-site, and when a company has multiple, small offices. Larger companies can invest in any one of a number of software packages that are designed to account for employee attendance, and will be able to assign someone to input and monitor the information. For emerging growth companies, it is much easier not to police time off, especially when everyone works long hours. “We’ll buy the software next year, when we’re bigger,” is a common reaction to the problem. (Read more…)

One might assume that health plans available to small and mid-sized companies are, like automobiles of the same class, comparable in terms of cost. In fact, the differences can be huge. If no effort is invested in the search for a cost-effective and well-administered plan, the result can be health coverage costs reaching 15%-20% of wages, a problem that investors will notice. In addition, employees frustrated with poor coverage and administration may look hard at moving to a competitor. Once again, the effort that is devoted on the front end will bring rewards later on as your company grows. Because differences in coverage and cost are so complex, it may be worthwhile to engage a consultant to bring proposals to the table and to explain them in an understandable way.

by Dan Weisberg “10 Mistakes Technology Companies Make With Employees”

Time Warner’s (NYSE: TWX) recently announced partnership with EarthLink (NASDAQ: ELNK) to offer broadband cable access to the second-largest ISP’s subscribers is the latest attempt by Time Warner and AOL (NYSE: AOL) to overcome regulatory hurdles threatening the pending merger between the two media giants. And although the three companies will be heavily impacted by the review of the Federal Trade Commission later this month, the scope of the outcome far eclipses the three companies involved. (Read more…)

When an employee communicates a complaint, particularly one that could form the basis for a legal action, a thorough and unbiased investigation should be conducted. In so doing, the investigator should remain objective and focus on ascertaining the facts so that appropriate action can be taken. (Read more…)

Make sure that employees acknowledge that they have received and read any employee manual or handbook. Policies or handbooks should be carefully reviewed on a regular basis for compliance with both state and federal law, as well as for any language that could be construed as a promise of continued employment. (Read more…)

If an employer intends the employee to be employed at-will, the employment application should clearly disclose the at-will nature of the position. Applications should also require that applicants acknowledge, in writing, that they have been informed of and understand that if they are hired, they may be terminated at any time with or without cause or notice. Make sure that every applicant reads and signs the application.

Express and implied contracts are also created during the interview process. Interviewers should avoid using any language that could be construed as a promise of continued employment, such as “career,” “permanent,” “as long as…,” and “secure.” Similarly, any written employment offer should clearly make the employment relationship terminable at the will of either party, with or without cause, and should not contain language from which the employee could infer a guarantee of employment for any length of time. Written employment offers should not provide for probationary periods, describe the position as permanent, or specify reasons for termination. Finally, a written offer should state that it constitutes the entire agreement and that modifications can only be made in writing. If a written offer is used, the employee should be required to sign it before commencing employment. (Read more…)