Why do you need legal advice when hiring employees?

Hiring an employee versus an independent contractor is essential for growth. If you are considering a new hire, CONGRATS! This is an exciting step for growth.

However, it can cause tremendous headaches and more questions than answers. Whatever route you take, be sure to document the relationship, goals, expectations, and compensation for your potential new hire.

Watch this video and read the article below to learn more about hiring your first employee. Contact us if you have any questions.

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Hiring Your First Employee: The Process

When hiring an employee, it is critical that you have an understanding of your expectations for the person. If you misclassify a candidate or fail to agree on incentive goals, you could be at risk for a significant labor lawsuit. We provide a series of employment documents that can be purchased individually or in a discounted package, depending on your needs, including the following:

  • Job Offer Letter This document conveys the terms of the offer of employment and sets the tone for the relationship with the employee. The risk of not using a job offer letter allows unhappy employees to sue your company for additional wages or benefits.

  • Employment Agreement This detailed contract between the company and an employee is longer than an offer letter and should describe the specifics of each party's rights and obligations.

  • Independent Contractor Agreement This agreement can be used for hiring freelancers or if your business is providing services as a contractor, which is ideal for startups and medium-sized businesses.

  • Employee Handbook This comprehensive manual is an important tool that can not only build a positive workplace culture but can also be useful to mitigate conflict.

How Many Employees Can I Manage Myself?

The average business owner can manage 10 employees/full-time contractors. Some of the most organized owners can manage up to 15 staff if they have additional assistants or executive support. Once your company reaches around 25 employees, it becomes critical to hire outside support. For example, you will be subject to additional labor laws such as medical benefits, disclosures, etc. Once you reach over 50 employees, federal protections and 401(k) restrictions are imposed, thus combined with sexual harassment training, it is critical to have a full-time dedicated Human Resources role. As anecdotal evidence, the company will also the increase number of petty complaints, threats over lawsuits, etc. Learn how the team at Ronald Rohde Law can provide the legal support you need! When looking for a Human Resources partner, look for one that has the same company culture and vision for growth as you do.


For more information on which option is best for you, please contact us.

Client Testimonials

See what our current clients have to say

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Casey Gregersen

Ron helped us structure our residential development business, he had great advice on LLC formations, contract negotiations, and has become a trusted advisor on our most difficult real estate deals.
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Jay Bhaumik

As a medical professional, our industry faces constant regulatory and compliance oversight. Ron helped my company negotiate and protect us from legal liability when reviewing employee agreements, commercial leases, vendor agreements, and almost every contract we bring him. His guidance has allowed me to reach a new level of confidence knowing I have a lawyer to represent my interests and provide that peace of mind.

Over 3,000 clients served

Ron has helped developers raise foreign investment funds through the EB5 program and represented foreign investors from China, Hong Kong, United Kingdom, and India.

Over $1 billion of real estate transactions

Ron has conducted acquisitions of commercial real estate, new construction development, and all areas of asset management for shopping centers, retail strip malls, restaurants, office buildings, industrial and warehouse assets.

Ron has helped thousands of investors on BiggerPockets where he is a leading expert on real estate investing.

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