When employing new workers or independent contractors, employers should have the following six legal papers on available.
What you’ll discover:
When you hire someone, you agree to abide by all state and federal labor regulations. This involves having the proper insurance, such as workers’ compensation insurance, and adhering to wage and hour laws. Hiring your first employee might be intimidating, but knowing all of the appropriate employment rules is a good place to start.
Almost all employment rules include documentation obligations. As a result, when you recruit new staff, you need keep particular paperwork on file. Every company is unique, but every employer should review these six legal papers.
An Job Application may reveal a lot about a candidate. Even if you do not employ a candidate after they have completed the application, it is always a good practice to retain their information on file in case you need to contact them again. The application gives critical background information about the individual you hire, such as job history and essential abilities. It should also be the initial piece of paper in every employee’s file.
In the United States, the great majority of workers do not have an Employment Contract. When a contract exists, it is a good idea to preserve a signed copy in your employee’s file. You may need to refer to it at different stages during their career.
It may be a good idea to examine the Employment Contract as time passes. Changes or modifications to the contract may be required to correctly represent the current situation of the employment relationship. Modifications may be addressed with the employee before signing and filing the new, modified agreement.
Independent contractors are not legally recognized workers and do not have the same rights as employees. But, if you have correctly categorized individuals in this manner, an Independent Contractor Agreement describing the connection is a must. As with an Employment Contract, you should store a signed copy of this form in the same folder as other records belonging to this person.
Many companies, especially small and new enterprises, make the error of forgetting to produce an employee handbook. This document is useful for outlining your company’s rules and processes, but it is not legally necessary. An Employee Handbook will teach your workers on company rules, including their rights at work, and may assist avoid future disagreements and difficulties.
If your employee will have access to confidential customer information or company practices that you do not want disclosed with rivals, you should utilize a Non-Disclosure Agreement. This sort of agreement requires employees to keep private information secret and specifies how certain categories of information should be handled. It also describes the potential implications of inappropriately sharing sensitive information.
In addition to these business-specific documents, you may want to have your new staff fill out certain federal paperwork. They may be required to fill out forms for tax withholding and to establish their legal right to work in the United States.
Form W-4 specifies how the employee wishes to be handled for income tax reasons, allowing you as an employer to withhold the appropriate amount of taxes. Form I-9 details the information given by the employee so that you may ensure that he or she is legally permitted to work in the United States.
Visit our Employment and HR Contracts and Documents page to get started on your business-specific forms and contracts. We can assist you in creating excellent forms that you may use to recruit your first staff. If you have a legal issue concerning your employment contracts or paperwork, you may also see a lawyer.