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The legal documents a business needs when getting started depend on the legal structure you choose. Sole proprietorships, partnerships, corporations, and limited liability companies each require different processes and documents to get started; these may include an operating agreement, bylaws, a certificate of incorporation, or a trade name certificate.
The documents you need will also vary depending on your industry and the service or goods you provide. These may include a client agreement, an independent contractor agreement, an employee handbook, and terms and conditions.
A small business should hire a lawyer instead of using an online legal template when the template doesn't fit the business's needs, when the language is unclear or hard to understand, or when you can't be sure it includes the provisions Connecticut requires, or that it doesn't contain provisions that aren't allowed.
Templates are generic by design, but every business is different, and the rules vary by state, so a template may leave out Connecticut requirements or include terms that don't fit how you operate. When you work with Levene Legal, we draft documents and contracts that fit your needs and plan for future possibilities, and we explain it all to you in a way you can understand. That's something you don't get from an online legal template.
The first step in risk management is identifying what could go wrong. Once you know that, you can take steps to reduce the risk before a problem actually occurs. Working with a lawyer can help you spot your specific legal risks and find practical ways to address them.
Flat fees make legal costs predictable. With hourly billing, you don’t know what you owe until the bill arrives, and estimates can run over. With a flat fee, you know the cost of each service up front, you pay only for what you need, and you can ask questions without worrying about incurring additional charges.
A business should review its contracts and policies, and make any necessary updates, at least once a year, or sooner if operational changes or changes in the law affect them. Individual contracts should also be reviewed before they come up for renewal.
The specific provisions will vary depending on your industry and the services or goods you provide. Business contracts should clearly state the scope of work or products, price and payment terms, and how and when the agreement can be terminated. Other provisions worth considering include intellectual property, confidentiality, limitation of liability, indemnification, and governing law. Some contracts must also include terms that are legally required.
A small business should bring in a lawyer before signing a contract whenever the language is confusing, the terms feel one-sided, or there's room to negotiate or push back on certain clauses. And even when nothing needs to change, it's still worth having a lawyer look things over. They can help you understand exactly what you're agreeing to, so you know you can meet your end of the deal and you're clear on the rights the contract gives you.
The specific provisions will vary depending on your industry and the services the independent contractor is providing. An independent contractor agreement should generally include provisions addressing the scope of work, the contractor's status as an independent contractor rather than an employee, confidentiality, fees and payment, intellectual property, and indemnification.
The specific provisions will vary depending on your industry and the services you provide. A client agreement should generally include provisions addressing the services provided, fees and payment, indemnification, force majeure, and client cooperation.
Before signing a commercial lease, small businesses should take the time to understand exactly what they're agreeing to, including: who’s responsible for repairs and maintenance, what uses are permitted in the space, the lease term, renewal and termination rights, and whether a personal guarantee is required.
An influencer agreement should contain provisions addressing what will be posted and when, fees and payment, intellectual property, and required disclosure.
Which employment laws apply to your small business depends on a variety of factors. Some laws only apply to employers with a certain number of employees. For example, Connecticut requires employers with three or more employees to provide all employees with sexual harassment training. Employers with fewer than three employees only need to provide sexual harassment training to supervisory employees. Another factor is the industry your business operates in. For example, in Connecticut, an employer cannot discharge or discipline an employee for off-duty cannabis use unless they have a written policy prohibiting it. However, certain employers, such as those in construction and healthcare, are exempt from this rule and can take action against employees for off-duty cannabis use without a written policy.
While many laws require employers to implement specific policies, no law requires you to have an employee handbook. However, your business may still need one to meet other requirements, such as accreditation standards, contractual obligations, or grant conditions. When creating a handbook, remember that one size doesn't fit all; every business will have different policies suited to its needs. Common and important policies to include are reasonable accommodation, anti-harassment, dress code, paid time off, Connecticut Paid Sick Leave, and Family and Medical Leave. Every handbook should also include an acknowledgment form for employees to sign, confirming they've received and reviewed it.
A business should review, and make any necessary updates, to its workplace policies at least once a year, or sooner if operational changes or changes in the law affect them.
Determining whether a worker is an employee or an independent contractor is not straightforward, as there is no single standard for making that determination. Instead, multiple standards exist, and the applicable one depends on the purpose of the classification. For example, for federal tax purposes, the Internal Revenue Service (IRS) uses the right-to-control test: a worker is considered an independent contractor if the company has the right to control or direct only the result of the work, not what will be done or how it will be done. For purposes of the Fair Labor Standards Act (FLSA), the Department of Labor (DOL) uses the economic realities test: a worker is considered an employee if they are economically dependent on the employer for work.
Every situation is unique, and regardless of which standard applies, determining a worker's status requires an individualized assessment of the relevant factors.
Before terminating an employee, employers should make sure they have documentation supporting the termination and that they have followed, and will continue to follow, all applicable laws regarding termination, including final payment requirements. Employers should also determine whether to offer a separation payment and, if so, prepare a separation agreement with a release of claims.
Almost all private sector employers with employees in Connecticut, regardless of their size, industry, or nonprofit status, are required to provide paid sick leave. All employees, whether part-time, full-time, temporary, or per diem, are entitled to this leave, with two exceptions: members of a construction-related union that is party to a multiemployer health plan, and seasonal employees employed for 120 days or less in a year. Employees must accrue leave at a rate of at least one hour for every thirty hours worked, in one-hour increments, up to a maximum of forty hours per year. Employees can use accrued paid sick leave for a broad range of reasons, including care or treatment for their own or a family member's mental or physical illness, injury, or health condition, as well as for a mental wellness day.
The Americans with Disabilities Act (ADA) and the Connecticut Fair Employment Practices Act (CFEPA) require covered employers to provide reasonable accommodations to qualified individuals with disabilities. A reasonable accommodation is any change to the work environment, or to the way things are customarily done, that enables an individual with a disability to participate in the application process, perform the essential functions of their job, or enjoy the benefits and privileges of employment. Examples of possible accommodations include making existing facilities accessible, modifying work schedules, allowing remote work, and providing access to assistive technology.
Hiring practices can expose employers to significant legal risk, particularly when it comes to what they can and cannot ask on an application or in an interview. For example, in Connecticut, an employer cannot ask an applicant about their wage or salary history unless the applicant has voluntarily disclosed that information, or the disclosure or verification of salary history is authorized by federal or state law for employment purposes. Employers also need to be mindful that they aren't asking discriminatory questions, or questions that may give the appearance of discrimination. This means applicants should not be asked for information relating to a protected class, such as gender identity, religion, or disability, unless there is a bona fide occupational qualification or need. Employers must also make sure they are complying with all applicable laws regarding background checks, including the Fair Credit Reporting Act (FCRA).
In order to form, nonprofits must file a Certificate of Incorporation with the Connecticut Secretary of State and adopt bylaws. In order to receive an exemption from the IRS, nonprofits must have a conflict of interest policy. The other documents you need will vary depending on the work that nonprofit is doing. These may include an independent contractor agreement, an employee handbook, a volunteer handbook, and a publicity release.
Bylaws should serve as a guide for the governance and operation of a nonprofit, and it is important that they be tailored to fit the needs and operations of your organization. In general, important provisions to include in nonprofit bylaws address committees, meetings by remote communication, officers, amendments, and removal of directors.
A nonprofit should review its bylaws, and make any necessary updates, at least once a year or sooner if operational changes or changes in the law affect them.
Nonprofit board members owe the organization a fiduciary duty, meaning they are held to a high standard of trust and care in how they act. That duty includes three components: care, loyalty, and obedience. The duty of care requires a director to act in good faith and to exercise the same judgment a reasonably prudent person would exercise in a similar role. The duty of loyalty requires a director to place the organization’s interests above their own. The duty of obedience requires a director to ensure the nonprofit carries out its stated mission and complies with the law, its bylaws, and its own policies.
Any compensation provided to an executive director must be reasonable and not excessive. There is no bright-line test for what constitutes reasonable compensation; instead, the Internal Revenue Service (IRS) looks at the facts and circumstances of each situation to make that determination. To support a finding that compensation is reasonable, the authorized body should approve the compensation in advance, determine the amount after reviewing and relying on comparability data, and document the basis for its decision.
When using volunteers, nonprofits should consider the risk that a volunteer could be inadvertently classified as an employee. If that happens, the organization becomes subject to the legal obligations that apply to employees, such as minimum wage requirements. To be properly classified as a volunteer, an individual must serve without expecting or receiving compensation.
Fractional general counsel is in-house style legal support for businesses with ongoing legal needs. Levene Legal serves as your outside general counsel for a flat monthly fee, covering unlimited services within the scope of the arrangement. You can sign up for a single month or continue month to month, based on what your business needs.
Levene Legal conducts audits of an organization's policies, procedures, and practices to assess legal compliance across a range of areas, including leave administration, wage and hour compliance, and grant compliance. The scope and process of each audit depend on the specific area being assessed and the scope agreed upon with the client.
To prepare effectively for a workplace investigation, an organization should have clear, written policies and reporting procedures in place, including anti-harassment and anti-retaliation policies. It's also important to act promptly once a complaint or concern arises.
An organization should review, and make any necessary updates, to its policies and procedures at least once a year, or sooner if operational changes or changes in the law affect them.
Grant requirements can be confusing to navigate. Legal counsel can help you understand your obligations under the grant, including reporting requirements, and can assist with audits throughout the grant term to confirm ongoing compliance.
Proactive legal counsel means leveraging legal guidance to prevent problems and optimize your operations. Without a lawyer involved proactively, your business is left vulnerable to legal risks and misses out on strategic guidance along the way. Working with a lawyer only after a dispute arises tends to cost more, since you have to address the immediate issue and make changes to reduce the risk of it happening again.
