Developing solid employment agreements with a startup team enables effective working relationships.
Our firm works with our startup clients to develop strong and enforceable employment agreements. Initially, this involves clearly delineating the distinction between an employee and independent contractor. Often, a business will want to categorize individuals it compensates for services as independent contractors. However, a misstep in this regard can cost a busines significantly in penalties. It becomes essential to obtain legal counsel to properly classify those working for the business.
Regardless of classification, agreements must be drafted that comply with applicable local, state, and federal law. The agreements must clearly delineate key terms of employment such as term or at-will status.
Many employment agreements will also include component parts such as Non-Disclosure Agreements (NDAs) and Non-Compete Agreements (NCAs). These agreements must be drafted such that terms of duration and geographical limits fall within the breadth of enforceability. At the same time, in the context of a startup (if not any type of business), the agreements must be drafted to reflect the realities of current employment trends such that key talented people will not be turned away.
Also, strategies for enforcing the terms of the employment agreements must exist to react quickly to perceived or actual violations. While not every violation will result in immediate employment litigation, a successful approach to enforcement will have a variety of options available for immediate implementation when needed.