Event

Most Common Labor and Employment Mistakes that Can Sink Your Startup

January 30, 2025

Use code SW for free registration!

For Silicon Valley startup founders, navigating labor and employment law is critical. A single error can lead to fines, lawsuits, and reputational harm, diverting precious time from scaling your business. Snell & Wilmer is proud to sponsor Access Silicon Valley’s workshop, where Snell & Wilmer labor and employment attorney Tracie Stender will walk through essential legal “dos and don’ts,” covering issues like California’s AB5 worker classification law, stock versus cash compensation, and critical employment concerns during financing due diligence.

The Dos to Consider:

Clear Employment Contracts and Policies
Comprehensive contracts protect your startup by clearly defining roles, responsibilities, compensation, and intellectual property rights. Tracie will outline best practices for creating risk-reducing agreements.

Classify Workers Correctly: The AB5 Challenge
Misclassifying workers can lead to audits and lawsuits. Tracie will clarify AB5’s requirements and share strategies for compliant contractor use, helping minimize risks.

Institute Strong Anti-Harassment Policies
Robust anti-harassment and anti-discrimination policies safeguard your workplace and business. Tracie will discuss effective ways to enforce these policies to protect your startup.

The Don’ts to Consider:

Don’t Overlook Wage and Hour Compliance
Errors in wage and hour compliance, like misclassification or relying on stock instead of cash, can be costly. Tracie will explain compliant compensation structures to avoid penalties.

Don’t Ignore Non-Compete and Non-Solicitation Agreements
California’s laws restrict non-competes. Tracie will discuss alternative strategies to protect your business from talent poaching while complying with local laws.

Don’t Wait Until Due Diligence to Address Compliance Gaps
Compliance issues can derail funding rounds. Tracie will stress the importance of early preparation to meet investor expectations.

The Perils of Arbitration vs. Court Action: Pros and Cons for Disputes
Arbitration can be efficient and private, but it has drawbacks. Tracie will examine when arbitration is preferable and when court action might be a better choice.

Key Takeaway:
Labor compliance is crucial to your startup’s success. This workshop will equip you with strategies to safeguard your business and allow you to focus on growth.

If you have any event-related questions, contact Alexandra Levine.