Due to the regular addition of new laws, companies should be continuously reviewing, updating and improving their employee policies. The beginning of the year is a good time to review policies and adjust them to match the new requirements that have occurred in the past year. Here are three evolvements in employment-related law that companies should act on:

1. Non-Compete and Non-Solicitation Agreements

Both of these agreements are being challenged nationwide. In some places it is acceptable to mandate that employees sign these agreements as a precondition of employment or continued employment. However, the ability to restrain post-employment competition is not absolute in a lawsuit. Companies should consider multiple aspects when crafting these agreements such as: the significance of the employee’s position, business interests that warrant legal protection, and more. If they aren’t carefully crafted, these agreements could be unenforceable and could even have consequences for the employer.

1. Social Media Policies

The National Labor Relation Board and courts are continuing to take issue with employer social media policies. Some of these policies are written too broadly, which could impact protected speech. They do not explain what they deem as confidential information, which could discourage employees from talking about certain aspects of their job, like wages or workplace conditions, which are protected. Employers need to go through their social media policy and narrow their definitions so as not to infringe on employees’ rights.

1. Misclassifying Employees

Misclassification of employees as an independent contractor when they should be considered a W-2 employee will continue to be a top priority in 2017. This misclassification can bring fines, penalties, back taxes, back wages, and attorney fees, costing the company significant time and money. Companies should consider taking the time to review each independent contractor relationship and correct any misclassifications to avoid lawsuits and penalties.

Talk to the team at InnovaCounsel to help implement these new developments into the workplace. The InnovaCounsel attorneys might also be able to catch some other unknown risks by conducting a Business Risk Assessment. Visit our website to learn more about it.