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Hiring Employees for Your Start-Up: Legal Aspects You Must Get Right

Hiring Employees for Your Start-Up: Legal Aspects You Must Get Right

Hiring employees for your start-up business or company might be very challenging. This is because, as a new employer, you do not have enough experience. Comparing it to an existing business, the employer knows the procedure to follow and the legal aspects to take.

As an employer, you definitely have to focus on getting the right employees to make up the best team for your business. When hiring employees, the main thing to consider as an employer is that you should not discriminate against anyone based on their nationality, gender, race, religion, disability or pregnancy. This is a legal aspect under federal law.

Before hiring employees, the best thing you can actually do is consult a business attorney to give you all the legal advice for start-ups. They can help you build your team quickly and set up the stage for successful business growth.

The following are other legal aspects you must get right while hiring employees for your start-up:

The Application Process

The first thing you should consider as an employer is going through the applicant’s background, including the application form. An application form is essential because it outlines the positive information of an applicant and does not expose them to negative information.

The main advantage is that an application form gives all applicants equal chances of expressing themselves in the best way possible. The information from the application form is what gets to be screened by the employer, and then he decides on the best candidate.

The application letter or resume does not allow you to disclose the age and other sensitive information such as being pregnant; therefore, this may not lead to employers running afoul of Civil Rights Acts.

Selecting of Candidates

After having all the resumes and going through them, the next step is to invite the selected candidates for an interview. From an application form, conducting an interview is what determines whether the candidate is eligible for the work. 

As an employer, you should follow the 80/20 rule during an interview. This rule means that the interviewer should only talk 20% while the interviewee should talk 80%. When picking the right candidate, you need to consider several things. The interviewer should be careful in asking questions that might suggest that you are promoting discrimination. Otherwise, the interviewer might land on the wrong end of the law.

If you might have concerns about conducting an interview, you should seek advice from more experienced persons.

Conducting a Legal Background Check

When you have identified suitable candidates through the interview, running a legal background check is essential. A background check requires that you disclose some things to the right candidate and have their authorization before the background report is out.

Classification of the Candidate

If you have decided to hire certain candidates, you ought to determine how to classify the new employers since each classification has different legal responsibilities. Examples of these classifications are;

  • Employees. Employees are under the employer; therefore, they rely on them. Their payment might be hourly, monthly or through commission. Employees may also be hired on a part-time or full-time basis.
  • Contractors. These are highly skilled people who might not depend on the employer if they are independent. But if they are working in your company or business, they have to be interpreted as employees.
  • At-Will Employment. Most employment is made at will; therefore, termination of any employment can occur at any time due to any reason from the employer. However, employees are allowed to quit their jobs without necessarily giving notice.

Contractual Agreement

A contractual agreement defines the duration of employment. This is where you need an employment agreement lawyer to help analyze an employment agreement between an employee and an employer. The lawyer ensures fairness and legal compliance.

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