HOUSTON, Texas. Not all employers intentionally violate labor laws. While some may cut corners in labor laws to protect their bottom lines, other companies may simply be ignorant to labor laws and may violate them unintentionally. New companies are especially at risk of making these mistakes. If you are planning on working for a startup or new business, it can be helpful to know your rights so that you can inform your employer and prevent violations. In the case of startups, informing your employer not only benefits you, but it protects your employer who could potentially face tens of thousands of dollars in fees and back pay in the future. When everyone follows the law, everyone is protected.
According to Forbes, startups may not have the extensive human resources or legal team they need to understand labor law. Common problems startups encounter in labor laws involve overtime pay and exemptions. Employers who plan to take these exemptions as startups are wise to speak to an employment law attorney, like Moore & Associates in Houston, Texas to understand whether they qualify. Pay discrimination is another issue that startups need to take care in navigating. More women are fighting back against sexual harassment and pay disparities in the workplace. Women should receive equal pay for equal work.
Another situation that some startups find themselves in is not having the cash on hand to pay employees. These startups may offer their employees stock options instead of pay. However, it is important to ensure that employees still receive the minimum wage. According to Tech Crunch, it is not legal to replace actual payment for stock options.
Startups need to be careful how they classify employees. Some startups may want to avoid paying taxes by classifying workers as independent contractors. However, it is important that independent contractors actually are classified as such under the law. The laws that determine whether a person is an employee or contractor can also vary from location to location. If you are not sure, on either side, the confusion can be costly. Workers may end up paying more in taxes out of pocket if they are misclassified. Employees could end up owing money in back taxes and even face fines if they improperly classify workers.
Another issue with startups has to do with restrictive covenants and non-compete clauses. If you are a worker, signing these clauses can restrict your ability to work in the field. As an employer, these covenants must be written properly for them to actually be enforceable and able to protect you.
If you have questions about the terms of your employment contract, or are concerned about potential wage violations at your startup, consider reaching out to Moore & Associates, employment law attorneys in Houston, Texas. Our firm can review your contract, determine whether you may be owed back pay, and fight to help you seek justice under the law. Protect your rights. Contact us today.
Moore & Associates
440 Louisiana Street, Suite 675
Houston, TX 77002