By Ling Kong and Lara Shortz
Jack Dorsey’s recent decision to lay off 931 employees at Block underscores how swiftly mishandled workforce changes can spiral into significant legal and reputational crises.
For startups — whose attention is often intensely focused on innovation and fundraising — overlooking fundamental employment law responsibilities can become a costly oversight.
That said, the importance of embracing employment law essentials from inception cannot be overstated. Doing so helps startups manage growth responsibly, prevent legal pitfalls and position themselves for sustained success.
As market conditions shift, startups inevitably confront tough staffing decisions. But terminations handled improperly can lead to severe consequences.
Mass layoffs trigger notification requirements under federal and state WARN Acts, and even smaller workplace reductions necessitate careful planning to avoid unintended discriminatory outcomes or wrongful termination claims.
Transparent, fair and well-documented termination processes protect startups from expensive litigation and preserve their integrity among investors and employees.
Equity compensation remains a pivotal incentive for attracting talent, especially when cash flow is tight. According to Carta’s State of Startups 2024 report, reliance on equity grants continues to increase.
However, poorly constructed equity agreements often...
The Clean Energy Regulator (CER) has confirmed that a New South Wales man has been convicted and fined after pleading guilty to multiple offences relating to fraudulent claims under the Small-scal...