Articles

Documents Your Small Business Can't Afford To Be Without

If you’re a solo shop with no employees, there are very few legal documents you really need aside from insurance, financial and tax paperwork…

But if you have employees, even if they’re family, there are a few documents and policies that you really can’t afford to be without.  Just for your own protection.

Today, people sue over everything imaginable and blood is not thicker than water. 

Employment issues (and the possible litigation arising from them) can take your business under in a heartbeat.  To protect yourself and your business, always have these documents in place.  And let us review them to make sure they’re legally sufficient.

Employment Contracts

This is one of the most important documents you can have.  Make sure that your employment contracts properly address:

  • The specifics of the employee’s position
  • Compensation and overtime (whether or not the employee is eligible based on their classification)
  • Vacation policy
  • Any applicable confidentiality issues
  • Sick leave policies

Documentation of Disciplinary Issues

These days, you have to be extremely careful when handling disciplinary issues with employees.  You have to document every conversation about employee performance or non-performance.  Your documentation has to be detailed and written carefully to make sure that, if or when you have to terminate the employee, your documentation will stand up in court.  Leave out personal commentary and opinion and stick with the facts.  And always be as detailed as possible including times, dates, and other specifics.

EEOC Compliance Policy

Every business with employees should have an anti-discrimination policy in writing and notice of it posted for public inspection.  That’s not just a good idea, it’s the law.  Make this policy a part of your employee handbook (if you don’t have one, you need one).

FMLA Policies

As with the EEOC policies, this information needs to be part of your employee handbook.  Make sure that your employees know what they’re entitled to under FMLA and the process for applying for it.  Include specifics on maternity and paternity leave.  Failing to handle FMLA issues properly can really land you in hot water so make sure you fully understand the policy as well.

Sick Leave Policy

Abuse of sick leave and excessive absenteeism can cost your business a lot of money.  Make sure your business has a written policy on sick leave and that every employee has a copy of the policy (yet another entry for that employee handbook).  Having a written policy takes care of two issues – providing coverage for employees who are legitimately ill and letting people who might abuse the policy know that abuse will not be tolerated. 

Making sure your business has these documents in place can save you thousands of dollars and possibly bankruptcy due to legal fees if an employee decides to sue.  Call us to talk about exactly how these documents should be written and what is or isn’t legally sufficient. 

If you’re a small business owner or you’re considering taking the leap to business ownership, call us today to schedule your comprehensive LIFT™ (legal, insurance, financial and tax) Foundation Audit.  As your personal legal advisors we can help you avoid employment issues before they happen. Normally, this session is $1250, but if you mention this article and we still have room on our calendar this month, we will waive that fee.