Hiring

Getting Started: Offers and Agreements

• Offer Letters & Employment Agreements – Clearly outline title, role, duties, compensation, at-will status, and any benefits. Executives may require more detailed employment agreements.
• Independent Contractor Agreements – Ensure proper classification. Misclassifying contractors as employees can trigger tax penalties, wage claims, and regulatory scrutiny.
• Confidentiality & IP Agreements – Every employee, contractor, and advisor should sign a Proprietary Information and Inventions Assignment Agreement (PIIAA) to ensure the company—not individuals—owns work product.
• Non-Solicitation and Non-Competition Clauses – Enforceability varies by state. We advise on what restrictions are permissible and effective.

Key Compliance Issues

• Employee vs. Contractor – This decision is closely scrutinized. Many states apply strict tests (like California’s ABC test) to determine worker status. Getting it wrong can result in back wages, taxes, and penalties.
• Exempt vs. Non-Exempt Employees – Federal and state wage laws impose different rules on overtime, meal and rest breaks, and salary thresholds. Simply giving someone a senior title is not enough to classify them as exempt.
• Interns – True unpaid internships are rare and must primarily benefit the intern, not the company. If in doubt, pay at least minimum wage.
• At-Will Employment – Most employees are hired at will, but this should be clearly stated in offer letters and policies.

In the Workplace

• Employee Handbooks & Policies – From anti-harassment and equal opportunity policies to technology and remote work policies, written policies set expectations and protect the company.
• Wage & Hour Compliance – Overtime, break rules, and payroll practices vary by state. Missteps can result in penalties far exceeding unpaid wages.
• Performance & Discipline – Implementing structured processes for performance management, complaints, and accommodations helps prevent claims and supports a fair workplace.
• Mandatory Training – Many states require regular sexual harassment prevention or other compliance training once you reach a certain headcount.

Termination and Offboarding

Ending an employment relationship requires care:

• Final Pay – States impose strict timing rules for final paychecks and accrued vacation.
• Severance Agreements – Often used to secure releases of claims and smooth transitions.
• Return of Property & Confidentiality – Departing employees should return company devices and be reminded of ongoing confidentiality obligations.
• Equity Treatment – Stock options and other awards are handled under your company’s equity plan (see our Equity Grants page).

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‍Do I need an employment agreement, or is an offer letter enough?
Most employees are hired with offer letters. Executives or key hires may need detailed employment agreements that cover severance, bonuses, and change-in-control provisions.

Can I pay interns with equity instead of cash?
No. Compensation must be in cash or cash-equivalent wages. Equity alone is not considered lawful payment for services.

Are non-competes enforceable?
It depends. Some states, like California, ban non-competes almost entirely. Other states allow them if reasonable in scope and duration. We tailor restrictions to be enforceable and effective.

What happens if I misclassify a contractor as an employee?
You may face liability for unpaid overtime, taxes, and penalties. This is a top enforcement priority for regulators. We help you make correct classifications from the start.

Do I need an employee handbook?
Once you have a handful of employees, yes. Handbooks set clear policies on harassment, leave, PTO, and remote work, protecting both your company and your team.