Unpaid interns
You can’t avoid the wage and hour laws for employees by simply characterizing your workers as “interns”. The laws of each state vary, but in general, to properly classify a person as intern, the person must be a student or trainee, the focus of the internship must be on training the intern, and the company must not derive any immediate advantage from retaining the intern (must be similar to training given in an educational environment). An individual’s ability to receive school credit for the internship is helpful, although not determinative in all cases. If the person does not qualify as an unpaid intern and should instead be classified as an employee, then the person needs to be paid wages in accordance with federal and state laws, and be covered by unemployment and workers’ compensation insurance.
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- The right time to incorporate
- Determining the right type of entity to create
- Where to incorporate
- Defining “qualified to do business” and where to be qualified
- Who makes decisions for the company?
- How startups compensate employees
- Foreign employees and their need for a visa
- Who owns your IP
- Licensing IP from a university or hospital
- Retaining a license to your IP
- Non-competes with former employers
- Reserving shares under the company’s option plan
- Allocating equity among founders
- Vesting restrictions on shares held by the founders
- Vesting terms that make sense
- Accelerating vesting on a sale or termination
- Tax implications related to shares that vest
- Rules for foreign founders in the US on a student visa
- Who owns your IP
- Non-competes with former employers
- Take a good idea with you when you leave a company
- Retaining a license to your IP
- Founder compensation
- Founder employment agreements
- Vesting restrictions on shares held by the founders
- Accelerating vesting on a sale or termination
- Vesting terms that make sense
- Tax implications related to shares that vest
- Difference between options and restricted stock
- Tax differences between ISOs and NSOs
- Granting options vs. issuing restricted stock
- Advisory board setup and compensation
- Reserving shares under the company's option plan