Your small business has grown and you need additional help. Congratulations! Before hiring someone, however, consider these points brought to you by successful entrepreneurs, Jason and Lakisha Williams.

1. 10 THINGS YOU SHOULD KNOW
WHEN HIRING AN EMPLOYEE
PRESENTATION BY JASON AND LAKISHA WILLIAMS

2. 1. WELCOME TO
THE THICKET
HIRING AN EMPLOYEE IMMEDIATELY
SUBJECTS YOU AND YOUR
BUSINESS TO FEDERAL, STATE, AND
EVEN COUNTY AND CITY LAWS (AND
PENALTIES AND LAWSUITS FOR
VIOLATING THEM). SO, EXPLORE
WHETHER INDEPENDENT
CONTRACTORS CAN MEET YOUR
NEEDS (BUT SEE NO. 10).

3. 2. PUTTING
JUNIOR TO
WORK
IF IT IS YOUR BUSINESS, YOU DON’T
OWE PAYROLL TAXES ON WAGES
PAID TO YOUR CHILD UNDER 18.
HOWEVER, EXTENDING FAMILY
RELATIONSHIPS TO THE
WORKPLACE CAN CREATE OR
EXACERBATE EMOTIONAL DISCORD.

4. 3. ENERGETIC &
INEXPENSIVE
IT’S FINE FOR KIDS TO HELP AROUND
THE OFFICE, BUT THERE ARE LEGAL
LIMITS ON THE TYPE AND AMOUNT OF
WORK TEENS CAN DO. LAWS FOR
MINORS DOING NONAGRICULTURAL
WORK ARE SUMMARIZED IN THE
DEPARTMENT OF LABOR’S CHILD LABOR
BULLETIN 101 (GO TO DOL.GOV AND
SEARCH FOR “CHILDLABOR101″).

5. 4. DON’T
DISCRIMINATE
WHEN INTERVIEWING, HIRING,
AND MANAGING EMPLOYEES,
FEDERAL LAW SAYS YOU CANNOT
DISCRIMINATE BASED ON
CERTAIN CHARACTERISTICS.
YOUR STATE LAWS OR CITY
ORDINANCES MAY LIST
ADDITIONAL CATEGORIES.

6. 5. WHAT DOES
“DISCRIMINATE”
MEAN,
EXACTLY?
IT INCLUDES BASING AN EMPLOYMENT
DECISION ON STEREOTYPES INSTEAD
OF FACTS AND PREFERRING (OR
EXCLUDING) AN APPLICANT
SPECIFICALLY BECAUSE OF A
PROTECTED CHARACTERISTIC – FOR
EXAMPLE, NOT HIRING A PREGNANT
WOMAN BECAUSE YOU ASSUME SHE’LL
QUIT.

7. 6. CHECKING UP
BESIDES CALLING AN APPLICANT’S
REFERENCES, YOU MAY ALSO RUN A
BACKGROUND CHECK. IF A THIRD PARTY
DOES THE CHECK, YOU MUST FOLLOW FAIR
CREDIT REPORTING ACT REQUIREMENTS,
DESIGNED TO PROTECT THE APPLICANT’S
PRIVACY. SEE THE FEDERAL TRADE
COMMISSION’S WEBSITE AT
WWW.FTC.GOV/OS/STATUTES/
FCRAJUMP.HTM.

8. 7.
EMPLOYMENT
CONTRACT?
YOU PROBABLY DON’T WANT ONE
UNLESS YOU’RE HIRING FOR A HIGH-
LEVEL POSITION. DON’T ACCIDENTALLY
CREATE ONE, EITHER: WRITTEN
MATERIALS GIVEN TO NEW EMPLOYEES
(INCLUDING EMPLOYEE HANDBOOKS)
SHOULD CLEARLY STATE THAT THEY
DON’T CREATE A CONTRACT BETWEEN
YOUR BUSINESS AND THE EMPLOYEE.

9. 8. THE RECORD
KEEPING
BEGINS
ON THE FIRST DAY, AN EMPLOYEE MUST
FILL OUT IRS FORM W-4 (FOR TAX
PURPOSES) AND U.S. CITIZENSHIP AND
IMMIGRATION SERVICES FORM I-9
(VERIFYING ELIGIBILITY TO WORK IN THE
UNITED STATES). YOU MUST KEEP FORM
I-9S SEPARATE FROM THE PERSONNEL
FILES AND RETAIN THEM FOR THREE YEARS
OR FOR ONE YEAR AFTER AN EMPLOYEE’S
TERMINATION, WHICHEVER COMES FIRST.

10. 9. KNOW
THYSELF
UNDERSTAND YOUR OWN
MANAGEMENT STYLE BEFORE
INTERVIEWING APPLICANTS.
BEING UP-FRONT ABOUT HOW
YOU WORK AND WHAT YOU
EXPECT WILL HELP PREVENT
BAD FEELINGS DURING THE
EMPLOYMENT RELATIONSHIP.

11. 10. IF IT WERE
ONLY SO
YOU CAN’T HIRE AN EMPLOYEE AND CALL
HIM OR HER AN INDEPENDENT
CONTRACTOR (THERE’S BEEN MUCH
DEBATE AROUND THIS RECENTLY WITH
COMPANIES LIKE UBER). CHECK IRS
FORM SS-8 TO DISTINGUISH THE TWO.
CAREFUL HERE – THE FEDERAL AND
STATE PENALTIES FOR TREATING AN
EMPLOYEE AS AN INDEPENDENT
CONTRACTOR ARE SEVERE.

12. SOURCE: YOUR LITTLE LEGAL
COMPANION. (2006). BERKELEY, CA:
NOLO.

13. If you liked this piece, please
visit: landjwilliams.com
Jason and Lakisha are a pair that have
taught themselves the intricacies of
industries as they were building their own
business. Able to start and exit multiple
companies in multiple industries have
proven their expertise in adaptability and
ability to learn. From nonprofit to
healthcare, bakery and hair salon the
Williams have been able to start and
grow entities into well known firms. Now
this power couple is focused on coaching
others how to successfully enter an
industry, and grow a company into a
success. To truly understand how Jason
and LaKisha can help an entrepreneur,
one must understand their story…