Groupon Logo.jpgIs Groupon’s June 3 announcement of its intent to launch an IPO  a sign of another looming “tech bubble”  or an entrepreneurial renaissance”?  Either way, entrepreneurs seeking to ride the next wave of technological innovation must be aware of the significant personal risks arising from failing to comply with wage and hour laws. 

Can’t pay your suppliers or rent on the swanky new office space you rented to impress potential venture capital investors?  If the business fails, at least the budding entrepreneur might be able to avoid or limit personal liability for these unpaid debts. Not so for unpaid wages owed to employees. 


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Wage & Hour Confusion.jpgDespite the tremendous amount of federal and state law governing the employment relationship, a business that follows the following core values can avoid significant liability under most labor and employment laws:

  • Follow the golden rule
  • Don’t make employment decisions for reasons  that are not related to the employee’s ability to do the job such as race, age, disability or sex
  • Employees have a right to band together to demand better treatment and higher wages from their employer
  • Provide a safe working environment

 But Wage and Hour Law is Different! 

Unlike most employment laws, which give employers and employees a fair amount of flexibility to come up with mutually beneficial and fair employment relationships, the FLSA and state wage and hour laws set out a strict rules which usually cannot be altered even if doing so would be best for both the employer and employee.   


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