5 Employment Law Pitfalls for Startups to Avoid

Law360

Ian Carleton Schaefer, Member of the Firm in the Labor and Employment practice and co-lead of the Technology, Media, and Telecommunications ("TMT") strategic industry group, in the firm’s New York office, and Nancy L. Gunzenhauser, Associate in the Labor and Employment practice, in the firm’s New York office, authored an article in Law360, titled “5 Employment Law Pitfalls for Startups to Avoid.” (Read the full version — subscription required.)

Following is an excerpt:

The common denominator for all startups, whether one has $50 or $500 million in its coffers, is its people. As they grow beyond their founders, each startup and emerging technology company will welcome new faces into the organization to deliver on its business plan. Whether they are new partners, employees, freelancers, consultants or otherwise, it is the human capital engine that often dictates the success or failure of an otherwise brilliant idea.

While welcoming like-minded, passionate people into one’s organization can be a source of immense pride for founders, it also presents employment law challenges and pitfalls that often go overlooked, much to the detriment of the bottom line. Our experience in this space informs the top five most overlooked (and potentially most damaging) employment law pitfalls your startup should avoid.