Six Compliance Issues Your Business Could Face
Originally Posted On: Forbes.com
By: Forbes Legal Council
From employee wages to privacy regulations, businesses face a dizzying number of potential legal issues these days. And while it may never be a company’s intention to break the law, without taking necessary precautions, things can easily slip through the cracks. So how can you be sure to avoid the dangers of non-compliance?
1. Distinguishing Contractors Versus Employees
In today’s environment, businesses need to be nimble with their labor force. Uber and Lyft are excellent examples. The line between a contractor and an independent employee is an amorphous one, and the penalties for incorrectly classifying labor add up. Attorneys who specialize in this can save you a lot of time and money if you speak with them early on and properly classify your workforce. – Matthew Digesti, Bristlecone Holdings
2. Determining Where Risk Lies
Attorneys can help businesses focus on risk management. For compliance, there are federal and state laws and litigation-based risk. An attorney can help a business determine what areas pose the most risk and what should be addressed first. – Fatima Khan, Airpush
3. Complying With Wage And Hour Laws
Many businesses need legal guidance in wage and hour matters, especially for overtime pay requirements. Oftentimes, businesses don’t know which employees need to be paid overtime wages and which workers are exempt, especially when it comes to managers and assistant managers. The failure to pay required overtime pay can be very costly if not done in accordance with state and federal laws. – Lawrence Buckfire, Buckfire & Buckfire, P.C.
4. Issuing Equity
When issuing equity, many states have security filing requirements. It can be very difficult to make sure these filing requirements are met, so it’s best to collaborate with a business attorney to make sure that all of the legal boxes are checked. – Doug Bend, Bend Law Group, PC
5. Reviewing A Franchise Agreement
If the business is a franchise, it’s common practice for attorneys to help the owner(s) comply with a franchise agreement. The franchise agreement contains numerous requirements that the owner is accountable for. Both parties should review the franchise’s business operations to make sure the business is compliant. – Kelsie Ackman, College Hunks Hauling Junk and Moving
6. Protecting Consumer Data
Any business that stores or uses consumers’ private information needs to be mindful of the large influx of litigation regarding data breaches that give rise to privacy concerns. While larger institutions are the obvious targets for class-action attorneys, it’s ideal for an emerging startup to ensure compliance from the outset. – Steven Heath, Heath & Steinbeck, LLP
The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.