Why Independent Contractors are Gold for Small Business

1.  Tax and Payroll Savings Compared to employees, independent contractors save small businesses a lot of hassle, taxes, and paperwork.  A small business does not have to do payroll for independent contractors; it does not have to pay social security and Medicare taxes, unemployment taxes or provide workers compensation and disability insurance.  These taxes and insurances really...

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Seal of Approval for Forfeiture for Competition Agreements

You may know that non-compete agreements between an employer and an employee are problematic since there is always the real possibility that a court may find that the restrictions put on the employee in the agreement are unreasonable.  There are even websites trying to help employees break their non-competes.  Nonetheless, businesses would like to be protected from an employee leaving...

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Confidentiality Agreements between a Business and an Employee

A confidentiality agreement (also known as a Non-Disclosure Agreement) is meant to protect a business from misappropriation of valuable proprietary information by employees.  Often it is a good idea to have one in place with your employees. When drafting or reviewing such a confidentiality agreement, check the following points (and consult with your attorney): 1.    Use the proper...

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Why using a Non Compete Agreement found on the Internet is a Bad Idea

A former employee taking customers from a business after having left the company’s employ is many business owner’s nightmare.  Thus, many businesses try to prevent their employees from competing with them during and even after the employment relationship has ended.   The solution seems simple: make  the employee sign a non compete agreement that prevents him or her...

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Keeping your Employees’ Personal Information Safe- the Security Breach and Notification Act

Picture this:  Your accountant has access to all of your employees’ records which she keeps on her computer system.  One day, against better judgment, she leaves the laptop in her car.  The laptop gets stolen.  Next thing you know, your employees are victims of identity theft. (Accountants loosing laptops seems to be a common occurrence.  See here, here and...

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Your Employee’s Right to Party!

Did you know that your employees have a right to pretty much do whatever pleases them outside of work?   New York law (New York labor law Section 201-d 1.b.) prohibits employers from firing employees for "engaging in legal recreational activities outside work hours."  "Recreational activities" are "…any lawful, leisure-time activity, for which the...

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Liability of New York Shareholders for Wages due to Employees

If you thought you were immune to liability as a shareholder of a New York corporation, know this:  In New York, the ten largest shareholders, as determined by their shareholding, of every  closely held corporation are personally liable for all  salaries due to any of its employees for services performed by them for the corporation.  See Sec 630 NY Business Corporation...

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