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4 Employment Law Mistakes Startups Avoid Making Today • Technology Flow

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Like the old one It goes without saying that your people are your business’ most important assets. And the same is true for startups.

As we’ve seen over the past few years, attracting and retaining talented workers is one of the biggest challenges startups face. Without enough employees, finding product-market fit and scaling a business is difficult, if not impossible.

While startups like to “move fast and break things,” when it comes to building a workforce, it’s important to slow down and make sure you’re complying with employment laws and implementing proper employment practices.

In this article, we look at four employment law mistakes that startups should avoid making. But first, let’s review the range of laws that can affect your startup as well as some of the dangers of non-compliance.

What employment laws apply?

A poorly written employee handbook is often worse than no handbook at all.

All businesses should identify which employment laws apply to them. There are federal, state, and local laws and regulations that impose obligations on your startup, and these can relate to everything from paid vacations to whether or not a non-compete agreement can be enforced.

This can be difficult to determine when a business has multiple locations, as laws vary from state to state and city to city. Beyond differences in jurisdictions, different laws and regulations apply based on factors such as company size and number of employees. For many federal laws, 50 employees is an important threshold — for example, private employers with fewer than 50 employees are not covered by the Family and Medical Leave Act, but they may be covered by state family and medical leave laws.

The patchwork of different employment laws and regulations that apply to your startup can be confusing. That’s why it’s important to focus on these issues and get help when needed so that your startup understands and adheres to its responsibilities.

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