Ian Carleton Schaefer, Nancy Gunzenhauser Mentioned in “Startup Companies Can’t Skimp on Employment Law”Corporate Counsel January 28, 2015
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, were mentioned in Corporate Counsel, in “Startup Companies Can't Skimp on Employment Law,” by Marlisse Silver Sweeney. (Read the full version — subscription required.)
Following is an excerpt:
Ian Carleton Schaefer and Nancy Gunzenhauser of Epstein Becker Green have compiled several tips and for avoiding common mistakes new companies often make when investing in human capital:
Paying through equity: Many new companies try to get around cash-flow problems by offering to pay employees in equity, but the authors note this can be a major no-no. First off, stock and options don’t count toward calculating minimum-wage violations. Additionally, the failure to pay overtime and attempting to do so through equity “is another minefield for startups.”
The article refers to Mr. Schaefer and Ms. Gunzenhauser’s blog post “Five Employment Law Pitfalls Start-Ups Should Avoid,” on Epstein Becker Green’s Technology Employment Law blog, for which Mr. Schaefer is co-editor.