top 10 risks for businesses

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TriNet Webinar

Top 10 Risks for Businesses

Mary Juetten – Founder & CEO TraklightKelly Pacatte – TriNet Sr. Employee Relations Consultant

2 TriNet Webinar Series | © 2015 TriNet Group, Inc. All rights reserved. 06/25/2014

Meet Our Subject Matter Experts - Mary

Mary Juetten Founder & CEO [email protected]@traklight / @maryjuetten

• CEI Incubator Graduate• Forbes, ABA LegalTech Contributor• 30 years business experience• J.D., CPA, CA • SNBC, AZ PBS, SXSW V2,

LAUNCH Speaker• SUCCESS Magazine Start Small,

Win Big 2013 winner


Meet Our Subject Matter Experts - Kelly

Kelly PacatteTriNet Senior Employee Relations Consultant

• Received her MBA from the University of Texas at Dallas

• Subject matter expert in areas of employee relations, employment investigations, and EEOC Charge Responses

• Over 9 years of human resources experience

• Based in Dallas, TX


Agenda

Welcome

• Intros

• 5 Business Risks

• 5 HR Risks

• Q&A Session


Top 5

Business Risks for 2015


Competing Daily Tasks

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Risk #1: Don’t go it alone – get an entity!

• C Corp

• S Corp

• LLC

Limit personal liability

Secure asset ownership


Risk #2: Co-Inventors & IP

Patents: Right to Exclude

(Utility & Design)

A patent is not:

Copyright ©

A patent is not:

Trademark ™ ℠ ®

A patent is DEFINITELY not:

Trade Secret


Risk #2: IP Ownership Challenges

Multiple Inventors in the US

When: Key Dates To Remember• Date of idea/inventions

(first to invent first INVENTOR to file)• Date of use• Date of filing• Date of conversion• Renewals


Risk #3: Co-founder

Handshakes = Headaches

• In writing • Buy/Sell• Every time


Risk #4: Fundraising

Careful re new rules on Solicitation

Do NOT start with a campaign, pitch or business plan.

THIS APPLIES TO ALL FINANCING!


Risk #4: More Fundraising

Crowdfunding options


Risk #4: Even More Fundraising

80% of a business’ value is in their IP

Practice safe crowdfunding

Identify IP

Protect IP

Pick a Platform

Build Social Capital

Create a Pitch

Pick a platformFederal Securities Equity not yet legal instead: 20ish states enacted | 20ish in progress

Reg A+ (June 19, 2015)


Risk #5: Financials

• Realistic

• Detailed

• Know your numbers

• Keep books & records


Top 5 Human Resources

Risks for 2015


Topic #6: Company Managers

People Managers represent the company.

• Promoted for technical and functional capabilities

• Inexperienced

• Experienced, but mavericks

• Responsible for keeping teams motivated and engaged

• Many manager have not received recent management training or participated in development programs

Recommendation: Train your early managers on the basics and continue to invest in developing your tenured managers.


Risk #7: Employee StatusMisclassification

The Fair Labor Standards Act provides protection for employees, ensuring compensation for all time worked and premium compensation for overtime work.

• Most common challenge: incorrect classification of employees as exempt

• Incorrectly classified positions result in inaccurate payment of wages; causing costly wage and hour claims

• Misclassifying employees as independent contractors exposes company to potential fines and penalties

Recommendation: Seek legal counsel with experience in employment law for guidance on classifications.


Risk #8: Insufficient Documentation of Performance on Behavioral Issues

Documenting performance issues is an action designed to halt misconduct or poor performance and protect the company.

• Failing to document employee issues creates:

• Difficulty for managers

• Liability for company

• Employee confusion

Recommendation: Use a “Record of Counseling” or “Corrective Action Notice” to document performance issues as they arise; seek guidance for objective recommendations and review.


Risk #9: Nonexistent or IncompleteJob Descriptions

Clear job descriptions promote accomplishment of business objectives and protect the organization from charges of discrimination and unfairness.

• Clear job descriptions support:

• Compensation planning

• Recruiting

• Realistic expectations

• Define essential functions of the job

Recommendations: Use a job description questionnaire to assist gathering of information.

Cover not only essential functions, but physical and other requirements for ADA compliance.


Risk #10: Failure to ProperlyHandle Leaves of Absence

Consistent leave policies and procedures are essential for compliance purposes.

• Published policies help ensure:

• Employees are aware of their rights under the applicable leave laws based on company size work location

• Employees understand company expectations of them

• Employees know what they can expect from the company

Recommendations: Ensure leave policies are documented and accessible to employees.

Train managers on the leave process and make sure managers know where to go to with questions and for assistance.


Thank you for yourParticipation!

top 10 risks for businesses

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