More and more, I’m hearing frustration from post-revenue or post-capital raise corporations that want to pay new hires in common stock. It seems like an obvious win-win: a new hire, with faith in the company’s success, gets paid in common stock for a future pay day, and the company can commit the cash it would … Read More
Once rare, non-compete agreements are now everywhere. For the companies that use them, they’re a great way to ensure employee loyalty and to protect against theft of trade secrets. For the employees who are subject to them, they can be a horrible restriction on the ability to freely pursue one’s trade. So if you you’ve … Read More
Businesses do not decide whether a person is an independent contractor or an employee. Whether a person is an employee or an independent contractor is a legal question—based upon how a person interacts with your company, performs work, gets paid, and other factors. And unfortunately, there is no clear-cut test on what determinates whether a … Read More
Recently read an article about a teenager whose Facebook status update cost her father the $80,000 settlement he won in an age-discrimination lawsuit. The facts are simple. Father signed an agreement for an $80,000 settlement in an age-discrimination case. The daughter bragged about the award on Facebook. The employer sued to get the settlement award … Read More
Six months ago you hired an employee. He shows up to work late more often than not. He’s always calling in sick, but never provides a medical explanation. When he is at work, he seems more devoted to updating his Facebook page than improving your company’s bottom line. He looked good on paper when you … Read More
Most people have heard of non-compete agreements. But there’s another scenario where an employer can keep you from working for a competitor, even in the absence of a prior agreement: the Inevitable Disclosure Doctrine. Three tests must be met for a court to invoke the doctrine. 1) You must possess trade secrets that you do … Read More
The question is, “should I have a non-compete agreement with my employees?” If you’re asking, the answer is almost certainly yes. A non-compete agreement is a contract (or, perhaps more simply, a clause within an employment contract) between an employee and an employer, where the employee agrees not to enter into competition with the employer … Read More