Have you already given up on your personal resolutions and goals for the year 2020? You do realize that we barely made a dent in the new year, right?
Well, don’t fret. You can make new resolutions, only this time, they can save you some red tape and legal struggles down the road. Of course, these are resolutions for your business. Here are some legal matters that you should take a look at annually:
Examining and Updating your Business’s Central Documents
Companies often make the mistake of relying on operating agreements, by-laws, or shareholder agreements that they found on Google decades ago. The scary part about that is that many things can change over the course of time, and you don’t want to alienate yourself or your heirs accidentally by utilizing a boilerplate document.
These documents are put in place for a reason, and a few words left in or omitted can ruin a buyout, the chance to go public, or a partner’s comfortable retirement. Tread carefully and hire an experienced attorney to draft documents that are all-inclusive and reflect your business as it is in 2020.
Researching New Employment Laws and Ensuring Compliance
Your policies and agreements regarding partners, employees, and freelance contractors may be seriously out-of-date if you last reviewed them a decade ago. New laws are passed by Congress everyday as well as by each individual state’s legislative branches. Many of these reflect workplace rules, employment discrimination, sexual harassment, affirmative action, break laws, and other pertinent topics. It is your duty to be on top of the latest laws and proposed bills as they pertain to your business.
For example, California’s AB5 bill describes the difference between independent contractors and employees. This has always been a nebulous concept at best, and the law tries to put each type of worker in a more defined box. This means much of your paperwork, specifically agreements with freelancers, may not hold up if challenged in court.
Looking Over your Contracts to Verify they are Adequate
Be sure that your existing contracts hold up against current laws and today’s ideals. For example, gig workers were nearly non-existent 20 years ago, but in 2020, they are reinvigorating the economy. Also, many non-binary or pre-op trans workers prefer the pronoun “they,” which wasn’t a boilerplate option on contracts even five years ago. These are just a couple of the situations that may warrant a quick scan of your current business contracts.
In conclusion, keeping your company legally compliant is an important part of not only staying afloat, but succeeding in the case of any challenges that you may face. So, be smart and keep on top of any legal changes that may affect your business this new year.