The Conversations with a Business Attorney podcast is your legal guide to navigating the challenges and opportunities that arise throughout the life cycle of a business. Jeff Large, a start-up business owner, explores topics like operator agreements, employee retention, and the value of protecting your company with Rhoades McKee Attorneys. Don’t get lost, listen and learn.

Mark Smith, an employment attorney with Rhoades McKee, discusses ways to attract employees and reduce risks when categorizing roles during recruitment.

In This Episode You’ll Learn:

  1. How to create a company environment that attracts employees and retains them.
  2. Differences between employees and contractors, as well as how to properly label those roles in the hiring process.
  3. The legal agreements involved when hiring an employee to improve retaining and prevent risk

The two legal aspects of employment Mark talks about are recruiting and retaining, thinking from the side of the business owner. 

“There are two aspects to the legal side. One is counseling the employer in terms of the recruiting processes. And then, once the employees have been hired, what kind of mechanisms can you utilize to retain them.” [6:13]

He acknowledges the shift in the workforce and encourages employers to focus on demonstrating and selling their company culture. Mark points out that the values and mission of a company are important for employees to keep them with the company.

Mark encourages having retention processes in place during the hiring process. He provides warning signs to look for in potential employees and how to navigate employees who will work against the retention purpose.

He explains the legal mechanisms, like forgivable loans, non-compete and non-solicit clauses, that are used to retain employees. The non-compete and non-solicit clauses keep employees from working with or soliciting clients and vendors for competitors.

But the hiring process comes with risks along the way and Mark shares how he protects employers from discrimination or other lawsuits. He sets up how to properly categorize employees by explaining the contractor versus employee status. 

While there are a lot of warning signs and risks to consider, Mark advises employers to take the process one step at a time and that retention comes with proper recruitment. 

Click here to read the transcript of the full interview for Episode 4.


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