10.13.2022

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Blogs

Now that you’re a VC-backed company, chances are you’re about to go hire a bunch of employees with those funds. Your investors are looking to you and your board to comply with the law and protect their investment from employee-related risks.

There are numerous federal and state regulations, agencies, and laws that regulate employer-employee conduct. While we do not attempt to describe them all here, the following is a list of employee issues that VC-backed startups may encounter:

  • Federal and state law obligations regarding equal opportunity and workplace discrimination, harassment, and retaliation.
  • Wage-and-hour requirements.
  • Exempt/nonexempt classification.
  • Hiring considerations, including I-9 verification and criminal background checks.
  • Offer letters and employment agreements.
  • Agreements containing noncompetition, nonsolicitation, and nondisclosure of confidential information clauses.
  • Employment-related filing, reporting, and insurance requirements.
  • Obligations regarding the handling of employee pension and health benefits.
  • Privacy concerns and corporate policies and procedures relating to the maintenance and safeguarding of computer and other corporate records.
  • Fines, taxes, and liability associated with the misclassification of independent contractors and interns.

 

Read the full blog post on Startup Percolator.