Top 10 Steps for Tech Startups

Maintain Compliant Payroll and Wage Practices Wage and hour violations can lead to significant liabilities – including penalties, interest, and class action exposure.

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BEST PRACTICES:

Pay all wages (including commissions, bonuses, and reimbursements) on time and according to law. Late or missed payments are common grounds for lawsuits and audits. Track hours, meal breaks, and rest periods for non-exempt employees in compliance with your state’s labor laws. In California, for example, failure to provide proper breaks can result in significant penalties. Ensure employees are properly categorized as exempt or non- exempt under both federal and state wage laws. Exempt employees are not entitled to overtime or in certain states (e.g., California) meal or rest periods; non-exempt employees are.

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