Entrepreneurs: Don’t Make These Mistakes
So you’re going into business on your own, or perhaps, you’ve been in business for a while now. You’re an entrepreneur. But that “on your own” spirit includes the need to understand the laws that often trip up entrepreneurs. Here are some of the most common laws and legal areas that cause entrepreneurs legal problems.
Payment and Salary Problems
Almost all businesses have to comply with the Fair Labor Standards Act, or FLSA. This law requires that you pay at least minimum wage for all employees and overtime for hours worked that exceed 40 hours a week.
The FLSA is very complex. The good news is that there are a lot of exceptions (called exemptions), which are employees that don’t need to be paid under this law. But you should absolutely see an attorney before deciding on your own whether your business or employees are exempt. That’s because the penalties for violating the FLSA can be harsh: punitive damages, attorneys fees, and paying twice the employee’s unpaid salary.
Workers’ Compensation
You may think of workers’ compensation as something that only large companies need to provide, or companies where workers are put in danger. But generally, any business with six or more employees, needs to provide workers’ compensation insurance. The employees may be more, or less, depending on your industry; for example, in construction, if you have only one employee, you need to provide coverage.
Regulatory Compliance
Do you know if your business is one that an executive agency of the state, or of congress, has passed hundreds of pages of rules about?
You may unknowingly be in, or want to be in, one of those industries. These rules and regulations, passed by executive agencies, may seem like micromanagement, or a hindrance to doing business, but violate them and you could be shut down, fined by the government, or even face criminal penalties.
Posting Notices
You follow all of the employee/employer laws. But have you posted the proper disclosures?
From workers’ compensation, to OSHA compliance, to how to make sexual harassment complains, there are a number of laws that require that you not just comply with them, but that you post notices in public places where your employees can see them about their rights under these laws.
Contracts
You probably want to deal with as few contracts as possible, as a business owner. But contracts, especially with your staff and employees, can protect you. Do you have:
- Confidentiality, nonsolicitation, trade secret or nondisclosure agreements
- Shareholders agreements
- Work from home agreements
- Personal device usage agreements
These are just some of the agreements and contracts that many new businesses overlook.
Intellectual Property
Hopefully you already checked to see if your business name is protected; that is, that you can actually use, and own, not just your business’ name, but also any slogans or artwork you’re using in ads.
If not, now is the time to check. And having a trademark isn’t enough; are you protecting it? If you see someone else using your designs, sayings, slogans, designs, or anything that you feel identifies you, now is the time to get an attorney and protect your intellectual property.
Start your business the right way: with our help. Call the West Palm Beach business and government law attorneys at Pike & Lustig to help you start your new business.
Source:
wework.com/ideas/professional-development/10-legal-issues-entrepreneurs-need-know
