What to Know Before Hiring Your First Employee
Here is what you should know as a business owner before you hire your first employee. Having workers can be beneficial, but it also subjects you to various requirements.
Learn About Employment Laws
There are a number of laws that apply to the employment context. They include:
- Discrimination statutes
- Workplace safety laws
- The Fair Labor Standards Act (FLSA)
- The Employee Retirement Income Security Act (ERISA)
- State employment laws
Violating any one of these laws could open you up to a lawsuit or an enforcement action. It is important that you understand what laws apply to you and how to follow them. This is where you should seek the advice of an attorney.
Change Your Business Structure
When you have employees, you may be subject to employment-based lawsuits. This is when you should take steps to protect yourself legally. If you have not made yourself an LLC, now would be the time to do so. It is important that you do not end up personally responsible for any legal judgments.
Depending on your business, you may need workers’ compensation insurance to protect you when your employees are hurt. Not having this insurance means that the employee could sue you directly for negligence. This could wipe out your business.
Review Your Employment Contract
You cannot just do business with employees on a handshake. The details of your agreement need to be clearly spelled out in writing to protect you. This would be the time to ask an attorney to draft a standard employment agreement. You could use this when you hire future employees.
Register as an Employer
You need to register with Florida and the IRS as a legal employer. You would receive an Employer Identification Number. You need to register to pay unemployment taxes.
Consult with Experienced Boca Raton Business Lawyers
The attorneys at Rubino Findley PLLC could help you understand the legal landscape for employers. Call us at 561.220.0741 or contact us online to schedule a time to talk.