Your small business is about to take a very big step – you’re hiring your first employee! Is the contract ready to sign? “What contract?” you may ask. That can be dangerous. Here are 3 reasons to sign a contract with all of your employees even if you run a small business.

#1 Protect Your Company

Your business has just gotten big enough to need employees. Don’t let hiring the wrong person wreck all of the hard work that got you to this point. A contract can protect your intellectual property so that a worker can’t spend a few weeks with your company and then take all of your great ideas and start a competing brand on the other side of town. You need to protect your intellectual property, and a good employment contract can help.

#2 Peace of Mind

When employer and employee know what is expected from both parties, there will be fewer disagreements that affect productivity and overall morale at the office. This is also a good practice when dealing with independent freelancers so there are no misunderstandings.

#3 Reinforce “At Will” Employment

California is an “At Will” state which means that the employer or employee can end the business relationship at any time. While there are illegal reasons to let an employee go (i.e., discrimination of any sort), you want to maintain this in the contract, so you don’t tie your hands if an employee isn’t performing as expected.

Contract and Agreement Services for Small Business Owners

Rather than trying to go it alone, why not accept the services of a law firm that understands small businesses because we are one ourselves. Pokala Law specializes in business contracts and agreements for small business owners, and our affordable rates can meet your budget needs. To learn more, call 1-844-695-1487 today.