The Legal Risks of Hiring Your First Full-time Employee

Every serious business leader hits an exhilarating inflection point where casual, ad-hoc support is no longer enough to sustain growth. You have built your nonprofit or service business beyond the initial proof-of-concept phase; as you scale, understanding the legal risks of hiring your first full-time employee becomes critical for your long-term survival.

Suddenly, you realize you will need to navigate W-2 employees versus 1099 contractor compliance. After doing some research, you decide to hire your very first full-time team member on a fixed salary. To keep things simple, you issue a casual offer letter, skip hourly time-tracking and operate under the common assumption that since they are "salaried," you simply don't pay overtime.

However, under modern wage and hour laws, this is a recipe for disaster.

Please select this link to read the complete article from OSAP Member MSN Law, LLC.