- If you have business partners, review / create a buy-sell agreement and obtain an adequate life insurance policy to make sure that you have a written plan (and the necessary funds) to buy-out the ill/deceased business partner(s) in such an event. Unfortunately, most of our clients don’t have buy-sell agreements and/or fail to maintain an active life insurance policies to fund the buy-out option in such agreements.
- Review / create your employee handbook to make sure that it (i) accurately reflects your actual business practices and employee benefits and (ii) covers the new legal areas, such as data privacy, certain types of non-discrimination, and genetic testing, etc.
- Review your relationship with independent contractors (“1099 employees”), as such relationships are frequently misclassified. The misclassification of employees as independent contractors is prevalent in trucking, IT, consulting, and construction industries. If your business is audited and any of your employees are misclassified as independent contractors, your business will be subject to devastating penalties, interest, overtime wages, and federal and state payroll taxes (including income taxes, workers compensation and unemployment insurance liabilities and penalties). More importantly, employee misclassifiaction puts the business owners’ and officers’ personal assets at risk for their willful violation of the applicable laws.
This article is intended to serve as a general summary of the issues outlined therein. While this article may include general guidance, it is not intended as, nor is it a substitute for, a qualified legal advice. Your receipt of this article from Lexern Law Group, Ltd. (the “LLG”) or any of its attorneys does not create an attorney-client relationship between you and the LLG. The opinions expressed in this articles are those of the authors of the article and does not reflect the opinion of the LLG.