Transcript
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Welcome back to another episode of the
What It Takes podcast. My name is Tilly
Krauss, your host. And today we're
sitting down with a expert in the world
of employment or employee law.
Employment law. Employment law. Kayen
Book, a employment attorney for how many
years? More than 30. Canara. Wow. I'm
such a young guy, it's hard to believe.
I'm excited for today's we're going to
talk about um what should employees do?
What should they prepare for? Things
they should know. Employers of they have
a small business. even if they do not
need to use an employment attorney. This
is definitely an episode you want to
listen to. Um, we're gonna talk about
scenarios, best practices. I'm excited.
Welcome K, to the podcast. Thanks a lot,
Ty. I appreciate it. It's great to be
here.
[Music]
How did you get into employment law? Why
employment law? What was what was it
like the process? If someone wants to
get into that world today, why did you
pick that path? So, I actually actually
went in kicking and screaming. I I
wasn't interested in really really.
Okay. I started working for a larger law
firm. I I I wanted to be a trial lawyer.
I wanted to be involved in litigation
and and uh and and that's what that's
the job that I had applied for and they
didn't have an opening in in particular.
Why litigation? I I thought it was
suitable to to uh my personality. I
think I was wrong about that because I'm
actually I think more suitable to trying
to give advice and help people, you
know, work through problems that rather
than fighting, but that's what I thought
at the time. I was a youngster. Um, and
um, as I said, I really went in kicking
and screaming. I really did not want to
do it. And that was the only position
that was available at that firm. And
they said, "Try it out for a few months
and see if you like it." Okay, so I did.
Now you think the next thing I'm going
to say and I loved it right away. Wrong.
That's not what happened. I was, as I
said, young and stubborn. I thought like
this is ridiculous. This is not what I
want to do. So, I didn't really um
didn't really focus on on learning the
basics of employment law. Instead, I
focused on trying to find another job in
litigation with another law firm. Okay.
Which I did and I went to a different
law firm and uh I worked in litigation
for a couple of years. Um realizing that
I I actually missed employment law
because I had spent a few months doing
it when I first started and um I sort of
gravitated back to it. um but not fully
in. Um and then when I started my own
law firm with a partner um how long
after after let's see it was about five
or six years after from when I started
at a law school. Yeah. This is a
question I like to ask people who
started their own business. It's very
nerve-wracking starting your own
business. Like you're giving up a steady
paycheck. Yes. You got to start from
scratch. Being a business owner means
you need to learn how to do sales. Yes.
What was that like? What pushed you over
the age of Were you married with a
family like higher level of
responsibilities?
What was that? I mean, it's a lot
starting a business. It is a lot. I
mean, my own personal story, I mean, you
know, because I I never like to do
anything the easy way. So, I literally
um got married six months later started
this law firm from scratch, not knowing
anything about how to run a law firm or
how to run a business. What happened
that made you decide like I'm out of
here, time to open my own shop? You
know, some people I think I think one of
them, you know, h have want to do things
their own way and want to sort of figure
things out and and and want to make
mistakes and learn from those mistakes
and and have something that they can own
and point to and say this is this is
what I created. And uh so I always had
um you know a pull towards that. Um the
law firm that I had been working with
before I started my own was having some
financial trouble. Um and I I I I
realized that uh it was going to be
rocky. Um and I didn't want to deal with
trying to solve someone else's problems.
I I felt uh I was more comfortable
trying to start something new myself.
Wow. Can I ask you what were you making
when you left that law firm? And how
long did it take for you to get back to
that compensation having your own
business?
Um I don't remember exact numbers but I
mean but but you know I was making a
comfortable salary. Um definitely the
easier way to go would have been like
okay I'm making a comfortable salary.
Let me look for another job with another
law firm. I just just got married just
starting a family. You know that would
have been the easy route to take. Um and
as I said I don't always like to do
things the easy way. Um and so um you
know I thought long term and long plan I
I I talked to my late father who was a
really terrific um influence and adviser
to me and I talked to other lawyers who
had started their own practices about
you know what the challenges were and I
spoke to my wife who was very supportive
and is still very supportive to this day
uh thank god and um you know we decided
you know what it's worth taking a little
bit of risk um maybe this is the time
before you have you lots of kids running
around and before you have the real
financial challenges um of of having a
family and this is maybe this is the
best time to give it a try. So I'm I'm
grateful that uh things worked out in a
positive way. Gosh, that's incredible.
How long do you think it took you to
reach the same compensation you were
making having a W2 salary? A year, six
months. No, I think it took longer than
that. I mean, I I'd have to go back and
take a, you know, an actual look at the
financial records, but it definitely
took, you know, a good three, four years
before I was can say that, you know,
okay, now I'm I'm I'm I'm where I was
before and now I can grow from here. So,
yeah, it took time. Definitely took
time. It was challenging. It was
definitely What advice would you give
somebody who's looking to start their
own law firm and they do have a family
with kids? Would you recommend that they
keep the W2, maybe start on the side,
jump into its full force, so they can
focus, they have that drive, that fire?
That's a It's a great question. I mean,
I don't think there's one answer that
fits everybody. Um, I think you have to
sort of figure out your personal
situation. I do think you do have to
have a certain amount of savings because
it's, you know, it's not going to be
easy at the beginning. I mean, you know,
there obviously there are exceptions
where you you had a big success for the
first moment, but I think you need to be
realistic and I think you need to have a
certain amount of savings, certain
amount of faith. Uh, not in that order.
Not in that order, of course. Faith
first, savings. Um, and support from
family, you know, was obviously very
very important. Moral support, financial
support sometimes too, right? Moral
support for sure. Um, but I think you do
need a focus. I think you do need to
have
things in place to to to help your
success. So that would mean a clear idea
of what it is that you want to
accomplish. Um I think a narrow focus in
my view certainly in the practice of law
I think is is the way to go. Um you can
always broaden that focus as you go
along but I think a narrow focus um you
know is a good recipe. I love that. Wow.
Pretty cool stuff. Um before we go into
it for people who are not familiar what
does the world of employment law really
cover on both ends employee and
employer? Sure. So what we do is uh you
know we're a resource for for for
business owners and for for for the for
the for the business operators so to
speak. Um sometimes it's the CFO,
sometimes it's the you know the the head
of of human resources, sometimes it's
the owner of the company. Um, and so,
you know, we give very practical
day-to-day advice. You have, you want,
you're starting a business, you want to
hire employees. What does that mean?
What is that about? Who's going to do
the payroll? Do you understand what's
involved in running a payroll? What do
you have to do for your employees in
terms of um terms of payment, in terms
of benefits, in terms of time off,
right, etc. Um, and then we sort of go
through, you know, I I actually when I
meet with a new client, one of the
things that we do is we spend a good 45
minutes to an hour just this is what it
takes in the life of the employment, you
know, span. This is what you need to
believe it or not advertising for
employees is regulated but really um
interview process um onboarding um
employee training employee discipline
employee management all the way through
unfortunately sometimes it's employee
termination or employee resignation
dealing with that. So, you know, we
really like to walk through the lifespan
of the employment relationship so that
someone really gets an overview. Can't
cover all the specifics in an hour, but
we try to give an overview so that they
really understand, you know, what what's
involved, understand the challenges. So,
that's what we try to do. Wow. Yeah.
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payroll. And we're back. My next
question is when it comes to business
owners, what would you say are some
common mistakes that you see business
owners making either on the small
business end or larger business?
How many hours do we have? We have three
minutes. No, I'm kidding.
Top top three mistakes that you've
gotten. Top five. I'll give you the top
three or four. I'll see how many I can
cover, you know, super quickly. But, um,
look, I think the most important thing
for, um, a someone who's starting out,
starting a business, and is hiring
somebody, we'll start off with a W2
employee. So, you need to know, probably
the most important thing to know is you
need to track their time. Um, so many
instances in which I find people have
regulation problem problems with the
Department of Labor lawsuits and things
like that are where they, oh, I hired
somebody, they work for me. I don't
didn't really keep track of their hours.
There was no time clock. There was no
app for them to record their time. There
was no computer program to record their
time. And so we just sort of I paid them
I paid this person a weekly salary and
that was all I did. And then all of a
sudden we have an enormous problem
because the person is saying they worked
50 60 70 hours a week. Um they were not
paid overtime and there's no record in
terms of how many hours they worked. So
that's probably one of the biggest
challenges I see. Frankly, and I'll say
this uh hopefully it'll only come up
this once, but it might come up uh
future. Every person who listens to this
podcast and beyond is probably an
employer of some sort. Meaning if you
have somebody comes into your house once
a week to clean up that per you are an
employer of that person. If you have
somebody who's looking after your kids
to hire a babysitter, you are an
employer. All of those rules apply to
you as an individual. So the fact that
you have to keep track of the hours and
that you may have to pay overtime if
they work more than 40 hours. Yeah. Even
if you have a housekeeper that's working
in your home, that rule applies to you.
So it's a really important thing to know
about. Oh wow. Really? Okay. Yeah. So
that's one common mistake. Um the other
one that I'm sure will come up later on
in our conversation is mclassifying. And
that is um you know anyone who's getting
into the business particularly in the
air if you're getting into the area of
anything related to construction you've
heard that um oh I'll just hire 1099s.
I'll hire independent contractors and
then I don't have to worry about all
these things that is talking to me about
because they're just my independent
contractor. They're not their employee.
You have to be really careful in this
area because it is very very um gray in
terms of what is an actual um
independent contractor. Different rules,
different places, etc. Um so we can talk
about that in more detail. Um so that's
an area where I find people make a lot
of mistakes. Um another area that people
make mistakes is um not documenting
problems. when you're having a problem
in the relationship and you don't write
it up for your own records. I'm not
talking about giving the person a write
up. I'm just talking about for your own
records. Keeping a record of this person
comes late all this time all the time.
This person is on their phone about
paying attention to their work. This
person is, you know, getting into
arguments with co-workers. Those are
things that you need to keep a record
of. And we'll come back to why that's
important. Um, and then the last area
that I think that people make mistakes
is, you know, just, you know, reacting
out of emotion and firing somebody
without understanding the repercussions
for what that might mean. Can you get a
give an example? Yeah, sure.
um you um have uh a worker who's uh you
told three times already, you know, not
not not to not to vape, you know, when
they're at a client's uh you know,
residence and the person keeps doing it
and you just really get angry and blow
up and just say that's it. You're done.
You're out of here. But that person also
last week told you that um he's going in
for surgery um next week. So, you know,
now all of a sudden you have a situation
where clearly the person did something
wrong. You have no record that they did
anything wrong because you never wrote
it up and but you do have but that you
do have a text or an email from the
person saying they need to take time off
next week to have surgery. So now you
have the person claiming that you fired
him because he was going out to take s
to have surgery instead of the real
reason which is because they vaped on
the job for the fourth time. So that's
that would just be you know a real life
story that we had recently you know
where you know something that should
never have been a threatened lawsuit
turned out to be a threatened lawsuit
because there was no documentation of
the real problem. There was
documentation of what I'll call the fake
problem and the fake problem became the
real problem really quickly. Wow. I want
to go back to you said a few challenges.
Yeah. So I want to ask you a couple
questions on that when it comes to
tracking time. Um, there are times where
you have roles where they are W2
employees, salespeople that are getting
a base salary, but they're on the road a
lot. How are you tracking their time? If
they're working hybrid schedule, how are
you tracking their time? And I, my job
is I talk to employees all the time
helping them get jobs. Sure.
There are times where employees can get
turned off by the clocking in when you
come to the office. They feel like, oh,
they're trying to micromanage me. So,
what is something that you could tell
business owners from advice? either for
sales people when they're on the road
traveling and it's a little hard to
track their time and uh people who feel
like you're sort of impeding on their I
don't know privacy but they feel
micromanaged. Sure. That's my first
question. Then we'll go to the next
question. Absolutely. Well, you know, if
if I ever decide to uh give up my job as
a lawyer, I can get a job for one of
these payroll companies uh and and try
to sell the the software for for
tracking time because it's so important
and there's so many great software
options out there. And if you have a
payroll uh company that you work with,
you should talk to your payroll company
about what systems they have because
there are great apps, there are great
computer programs, there are all kinds
of great things. The apps are the best
because you know the employee has it on
their phone, there's no excuse for them
not using it. So in terms of ease to
use, it's easier today than ever to to
to to do it. Even if the person's on the
road, even if the person is um you know
checking in with clients, going you know
going out to visit clients, etc. um in
the car, whatever it is. Um really,
really easy to use programs today. Um in
terms of the intrusiveness, I think I
hope that in 2025 most people realize
that, you know, you're being monitored
whether by your employer, whether by the
government, whether by Instagram or
whatever your social app, uh social
media app you like to use, you're being
monitored all the time. So, um I think I
would speak to employees about being a
measure of productivity more than
anything. Okay. Um it's not that we're
you know keeping you know we're
micromanaging you but rather we're
measuring productivity. So if we know
that you're you know off today and so
we're not tracking the productivity it
doesn't count so to speak in terms of
how productive or not productive you
are. Um if you're you know taking your
lunch break obviously you know we're not
looking at what the productivity during
your lunch break is but we need that we
need this information to measure
productivity. And then the last thing I
would say is, you know, you can say very
honestly it's required by law because
that's really best answer to give
anybody. It is required by law. It's
required by law to track everybody's
hours.
Well, a longer discussion is about who
who falls under this, but most employees
do fall under this. You have to pay them
by the hour. Um, and so if you don't
have records, and this is where
unfortunately people, you know, call us
in an emergency situation, you know,
they they didn't track the hours and
then they're being accused of not having
paid people properly and they don't have
records and then they are really really
in a bad spot because it's hard to say,
oh well, I can, you know, bring five
people forward who'll tell you that they
didn't work more than 40 hours. If you
don't have the records, you're at a
very, very distinct disadvantage. And
what about people who are getting an
annual salary who are not getting paid
hourly? That's a great question. So this
goes to the answer to the answer the
question as to who has to track their
hours and who doesn't have to track the
hours. So let's start with the premise
is the opposite of what people think.
People think okay everyone's salaried
unless I think otherwise. And it's
really the opposite of that. It's
everyone should be on an hourly basis
unless they are what we call exempt.
Exempt in in vernacular means putter. So
when is a person exempt? Very very
narrow categories. A person is exempt if
they are a professional employee. That
means that they have to have an advanced
degree. Most people don't fall into
that. People are exempt if they are a
supervisor. But a supervisor is a very
narrow category. A supervisor is someone
who their main responsibility, not their
aside responsibility, their main
responsibility is to supervise two or
more other employees. But that's only
part of the test. The other part of the
test is they have to be making more than
a certain salary. And that will depend
on where they are. So that could be
different in New Jersey. It could be
different in New York, very different in
New York City. But the salary level is
somewhere between 36 $37,000 on the low.
That would be in New Jersey, which
follows the federal law. But on the
high, New York City, so Brooklyn,
Manhattan, Staten Island, Bronx, Queens,
five burrows, that's a really high
number. That number can be as high as,
you know, 60 or or so thousand dollars
that the person has to be making. So, if
they're making less than that, then for
sure, even if they're supervising other
people, they have to be paid by the
hour. If they're making more than that,
they have to be supervising other
people. It's not enough for them to be
called a manager. They actually have to
be supervising people. Wow. Yeah. Very
cool. What about when it comes to miscl
misclassifying?
Um, I know that most employees are W2
employees, but there are many times
salespeople that get hired as 1099. Uh,
they get straight commission or in the
world of real estate brokers, right? I'm
assuming real estate brokers are all
1099. Um, how are they able to do that
where
the owner of the real estate agency is
helping them? They're giving them
support. They are tracking their KPIs.
They want them to be successful. They
are doing daily meetings.
How does that work? Are they really
supposed to be 1099 or it's a legal
loophole? It's a, as I said, it's it's
it's a very complicated area. Um, so I'm
I'm going to try to simplify it for the
purposes of the podcast. So, and real
estate brokers is a very different
category. So, I'm going to put that
aside for a second. I'm sorry. Mortgage
brokers,
mortgage brokers again, mortgage
mortgage broker mortgage brokerage is
regulated in a different way. Real
estate brokerage regulated different
way. I can come back to that in a
moment. But talk about your typ your
your basic situation. Your basic
situation is you want to hire someone to
work with you to help you in some
situation. So the way you should think
about it is someone is a 1099 if they
are an independent contractor. What that
means is take the word independent. That
means they have to be on their own. They
have to set their own schedule. You
cannot be telling them when to do
something. how to do something, where to
do something. They have to be
independent. They have to have the
ability to work for other people, doing
other jobs, earning other money on their
own because they're independent. So, the
example I like to give is when the air
conditioning is not working in my office
and I call an air conditioner repair
person, that person's an independent
contractor coming in to fix my air
conditioner. And he decides when he's
going to come in. He decides how he's
going to fix it. He decides what he's
going to charge me. He sends me a bill
for services. That's an independent
contractor. Someone who comes into my
office every single day to do the
bookkeeping in my office is supposed to
come in and be there at 9:30 to 5:30. I
tell them what the salary is. I tell
them when they can take a day off, that
person's not independent, right? Even if
they're doing a little bit of work on
the side, even if they're working for me
part-time, they're not independent. And
so that person is clearly not an
independent contractor. That person is
employee, right? Everything else in the
middle is gray, right? So, we get these
questions all the time. Okay, I have
somebody, you know, I told that person
that they can they can make their own
hours. Is it is that person an
independent contractor? Again, depends
how closely you're watching over the job
and how closely you're telling the
person what to do. And you have to be
careful in this area because there are a
number of um entities that are
interested in what you're doing. IRS is
interested, the Department of Labor is
interested. um and the employee or
worker themselves has a stake in it.
Also, a lot of times people say, "Well,
the person came to me and said, "I want
to be a 1099. What am I supposed to do?"
That doesn't get you off the hook. That
that that doesn't address the situation.
So, you definitely have to be careful in
this area. Now, you asked about real
estate and mortgage brokers. So, those
are a little bit different. Real estate
bro real estate brokerage has its own
rules and does allow people to be
independent agents and does allow for
independent contract relationships.
Mortgage brokerage has similar types of
rules. So there you do have to look at
every situation what they're doing. But
what I find and this happens very often
is someone comes to me and says, "Yeah,
so I have a real estate management firm
and I have someone who works in my
office who they're in charge of certain
buildings. I call them a broker even
though they're not really a broker. Um,
and they do sort of get some income from
each of the buildings and so can I call
this person a 1099? I can pay them a
1099. So, as I said, you have to sort of
look at every situation um on its own
merit and try to figure it out. Okay.
Um, so we spoke about what what are some
of the challenges that you see employers
making. On the flip side, what do you
think are some of the challenges that
you see employees making? So, I think
employees um I think you know one of the
things that um is really important for
um an employee is to understand what the
terms are in terms of when they come in
and start a job like you know what's
really expected and honestly often it's
difficult to get a written contract with
an employer. So why is it difficult? Um
many times an employer doesn't want to
commit to certain things and you know to
be very um open I mean if an employer
asks me do I need to have an employment
contract for all of my employees? My
answer is no. You know your lower level
employees you don't need to have an
employment contract but I do think it's
important to have something in writing
what I'll call an offer letter which
will spell out what the expectations
are. It'll have sort of a short list of
what the job duties are. It'll have what
the start starting salary is. Um it'll
have maybe a summary of what the
benefits and days off are. So I think
that's an important thing to do. But I
think that where there's a dispute
sometimes with an employee is where
there's commission involved. U there's a
bonus involved and there's nothing
spelled out in terms of you know how
that works. What's the percentage? When
is it earned? When is it paid? So I
think on both sides I think that's a
really important thing to get in
writing. I think it's really important
for both sides for that to be in writing
so there's no confusion, no dispute
about it afterwards. What would you say
is the difference between an offer
letter and a contract, an employment
contract?
Um, well, an employee offer letter, you
know, does say very clearly clearly that
the employee is is an atill employee.
That means they can leave when they
want, they can be fired when they want.
So that's what an offer letter would
say. Um, an employment contract
typically is for a specific term. could
be for a year, could be for two years,
could be something that is for a year
and then gets renewed. So that's one
major difference. Um the other ma major
difference in terms of an employment
contract versus an offer letter is a
contract generally speaking um
employment contract generally speaking
would have some something to say in
terms of what happens if it doesn't work
out, right? So it might say something
about severance or it might say
something about a certain amount of
notice that has to be given before the
person has to be let go. And that's why
very often, you know, you you would not
have that type of contract, you know,
with a lower level employee. You would
generally have that for an executive.
Understood. Um for 1099
contractors,
but salespeople who are hired as a 1099,
they're commission only or real estate
brokers. Um should they be getting an
offer letter?
So that that's a that's an excellent
question. Excellent point. So, one thing
that one should know since we're we're
sitting in New York now and a lot of the
people who are listening, you may have
New York businesses or may be working in
New York. New York law requires you to
have something in writing. When it comes
to independent contractors, you must
have something in writing. Um, and there
are certain exceptions, but for the most
part, it applies. And so, what that
contract has to say, how much is the
person getting paid, how often are they
getting paid? If it's commission, it has
to say how you earn the commission, when
when is the commission paid, etc. So,
that has to be right. Clarify, this is
also for $1099. Yeah, but you're not
doing that if you're hiring an air
conditioning guy. Um, you should Does an
invoice count? an invoice could count,
but you know, typically speaking, if you
have somebody who comes to work for you
to and, you know, do regular repair um
on your air conditioning unit, you
should have something in writing that
says that the person's going to come in
certain amount of times, they get paid,
you know, $100 an hour or whatever it
is, and they're going to get paid upon
completion of the job or every 30 days
or whatever it is. Yeah, usually that
has to be in writing. Got it. Very
interesting. Um, co has passed. I want
to move on to my Do you want to add
anything before we move on to the next
question? No, I was going to say even,
you know, even though that the rule that
I said applies in New York, I would say
no matter where you are, it's it's just
good practical advice. When you are
agreeing to pay somebody a commission, a
bonus, whatever it is, to have something
in writing so that there honestly, when
is there litigation? When people can't
agree in terms of what was supposed to
happen, that's when you have people
fighting because uh you know Joe says I
was promised 5% commission and the
company owner you know says no there was
we never agreed on 5%. Or you know Joe
says I was supposed to get it quarterly
and I you know and we're now in the
third quarter and I never got anything.
So disputes happen when there's nothing
in writing. Um to add some Jewism here,
the toa says every transaction in
business or in personal should be in
writing. You look in the garamar, you
look in go to best and write up aar.
Every transaction needs to be in
writing. It should be. I it still amazes
me that people get hired without offer
letters giving a clear description. When
are they getting paid? What are the off
days? Are there any benefits? What are
the expectations? You need it in
writing. People forget things all the
time and verbal doesn't count, right?
Since we're talking to the community,
the most uh most common thing I get is,
well, what about WhatsApp, right? Does
that count? And the answer is, well, it
it could. I mean, look, my preference
would be if if we could get and again,
I'm not pitching this as you need to
hire me to to draft a formal contract.
You should you should I appreciate that.
He's good. But I'm saying even if you
have, you know, a piece of paper that
says, you know, we agreed it's a 5%
commission. It's going to be paid
quarterly. you know it only happens when
we get paid you know by the customer
even that would be enough
okay you don't have that but we do have
WhatsApp messages going back and forth
that could work um talk about
so you know can it work yes so if I
don't have anything else I can go back
and take a look at what the WhatsApp
message exchange was okay but I
preferably like to see you know a
written document that has it if I don't
even have anything on WhatsApp and it
just well we talked about it and we
discussed it and we agreed and we shook
hands on it. As much as I know that
works in the diamond district and it's
been working for the longest time in the
diamond district in everywhere else in
the world a handshake deal is just not
going to cut it really. Okay, thank you
for sharing that. Next question is co is
gone.
Um unfortunately I still see people
wearing masks when they're working the
street or driving by themselves in the
car. I don't get it. But how has the
landscape the remote landscape changed
when it comes to um employers and
employees rights at work? Yeah, that's a
great question because we do um you know
the the the the remote workplace is a
little um challenging um more than a
little it's very challenging. So for
both the employee and the employer um
for the employee the challenge is when
does the workday end? Okay.
So that that that's a big challenge, but
that's a challenge on the employer side
also because we talked about tracking
time. So if you don't have um any time
tracking, then you're sort of at the
mercy with the employee says, "I work 10
hours a day and I work 60 hours this
week and whatever it is." And you know,
so not having a time tracking device,
whether it's an app on the phone,
whether it's a program on the computer,
you know, is a big challenge. Um, and we
find that I'm sure this comes up a lot
for you, you know, from measuring
productivity that is an issue also. Like
I know myself when I work at home, you
know, there are times that I'm very
focused, there are times that there's
noise in the background, there are
distractions, whatever it is. So that is
a very big challenge. Absolutely. So
what advice would you give somebody who
does have remote employees? What are
things they should look out for? Um, I
think that they should have some type of
productivity software. Um, I think that
that's really important. I think regular
check-ins um are important. Um maybe a
daily call, a daily Zoom, a daily team's
call, whatever it is, just to check in
and find out, you know, what the
person's up to, what the what's the
what's on tap for today, what are you
busy with, um any any resources we can
help you with from the home office. Um
you know, that that's, you know, that's
an important thing as well. Um, where I
sit, the most challenging thing for for
remote is where you do different things
for different people. Okay. Um, and that
can lead to, you know, accusations of
favoritism, discrimination, etc. That is
my biggest challenge with really
workplace. Yeah. Um, very interesting.
Thank you for sharing. Um,
discrimination and harassment are major
topics. Mhm. So what do you think are
some of the most understood parts of
this world, the laws by either employees
and employers?
So this goes back to something we talked
about earlier, which is documenting
things. Um because I think that
I get a number of um a number of clients
who know a little bit. They've either
done their homework or they've dealt
with things in the past and they say,
"Well, my business is in New York. My
business is in New Jersey. We're an at
in an atill state." These are atwill
employees, which is a term that you can
find if you do your internet search, if
you've been in business, etc. So, in an
atill state, what does that mean? That
means I can hire, I can decide I don't
like this person. I can decide this
person is a fit and and this person is
not hired for a particular term, so I
could just let them go. So why should
this be such an issue? Um and the answer
is that and I I sort of you know I'm
always in in learning mode. So I' I've
sort of you know paid attention to this
very recently. How as much as we like to
think that that's the rule
when you are sued and there's a claim of
discrimination, unfair treatment,
whatever it is, you have to understand
this case might actually go all the way
through and go to a jury trial. And when
you talk about those ordinary people
sitting on a jury, the most important
thing in their mind is did you act
fairly,
not did you discriminate, not was this
an outwill employee. They want to know
did you act fairly and so you really
need to be very focused on fairness. You
talked earlier about personal ethics,
about Torah values, etc. I think it all
fits very nicely together in that treat
your worker fairly, right? Treat your
worker honestly and if you do that'll
get you very very far. That'll take you
very very far. And so fairness means
sometimes giving a person a warning.
Fairness means giving a person clear
instructions about what the expectations
are. And that's where you talked about
you know job descriptions. Fairness
means sometimes means a second chance
sometimes it doesn't. And you you know
you that is you know a lot of that is
left to your discretion. But where we're
finding discrimination, you know, comes
up is, as I said, where you sort of act
one way for one person, act a different
way for a different person, giving one
person a fair chance, and not giving a
fair chance to another person. Um, you
know, acting in a way or reacting in a
way in which you're not being consistent
and not being fair will come back to
hurt you. Now, on the other hand, I get
from employers like, I was so nice to
this person. I lent them money. I gave
them time off when they had a problem
with a family member, etc. And now
they're threatening to sue me and I feel
betrayed and I hear that also. So that
also, you know, resonates with me. Um,
which is why I really think that you,
you know, having job descriptions,
having an employee handbook with
policies and being consistent in how you
um enforce those policies will get you a
long way. So that those are really key
things to worry about. Can I go to sort
of a side point which also relating to
discrimination? I think the other thing
that people don't understand when people
think discrimination, they automatically
think, oh, that means race
discrimination. You know, if I'm not
treating my African-American employees
in the same way that I'm treating my
white employees, I'm not treating my
Hispanic employees in the same way that
I'm treating my Jewish employees.
discrimination really has a different
layer that I think that people or should
not layer a different focus that I think
people are not as um aware of which is
it also deals with things like
disability. It deals with things like
pregnancy and that is a whole other area
that I think people have to pay a little
bit more attention to or a lot more
attention to depending on what your
business is. So let's just talk about an
example.
Um, someone comes in and says, um, I
can't, you know, work in this particular
environment because I have asthma. Okay,
what do you do with that? Someone comes
in and says, um, I'm having, we talked
about this earlier, I'm having surgery
next week, you know, um, I can't work
for the next two weeks after that. These
are areas that you need to be very
careful and very knowledgeable in
because this might this is not what you
do for your your your day job, so to
speak. you know, you're running a
cleaning business, you're running a dry
cleaner, you're running a um an IT um
advisory firm, whatever it is, like this
is not what you deal with on a daily on
a daily basis. So, you need to really
know a lot in order to know how to deal
with these areas and not trip and fall
and and and end up in a in a in a
difficult situation. Thank you so much.
So, I want to go back. I have two
questions. One on the first point, one
on the second point. The first point is
does religion and Torah values play a
role if something goes to jury? And to
elaborate on that, can someone who has a
company in aides
community? And to elaborate on that,
they might even have a female team and
these people are they, you know, because
of or modesty, they'll have the women
working in one area, the men working in
a in another side of the room. They
don't want them intermingling, sch
smoozing. They want to be very
professional. Um, and they want to keep
their female employees comfortable. If
the men would be working in intermingle
together with the men, they wouldn't
feel very comfortable. Is that allowed?
That's my first question. My second
question is um talking about pregnancy
and discrimination.
I've had people call me while they're
taking PFL or maternity and said, "My
PFL is ending in two weeks. I want to
start looking now for a new job."
Many business owners might feel betrayed
like why didn't you tell us before you
have the baby like you plan on getting a
new job you're just trying to suck the
PFL out of us you know and then take a
new job they won't have enough time to
find a replacement sure two separate
questions I'm going to take the second
one first okay u even though it it you
know I I could you know give a 45 minute
or longer class on that subject alone
which is um pregnancy
um you know medical leaves are related
to that to a certain extent. Um and and
and you know what that involves. Again,
this could differ from
city to city, state to state, federal,
it's all different. So that's why this
does get kind of complicated. But let's
talk just very basics. First of all, a
person um if they are either um going to
have a baby, adopt a baby um or it's
similar um they need to leave because
they have a family member who's sick or
they themselves have some illness that
they have to deal with. So, every
situation is going to be different. um
you have to look at the specific
circumstances. But what you need to know
is as a business owner is one if the
person is working for you for a spec for
for a period of time in some places it
could be as little as six months in some
places it might be a year they will be
eligible to take a certain amount of
time off. Okay. Um, and that means that
if the person is eligible to take that t
amount of time off, then they have to be
able to take that time off and come back
to a job. Okay, that's that's the key
responsibility of the business owner. If
the person is entitled to take that time
off, then you have to bring them back to
a job. So, the most common thing that
I'm finding these days is that, you
know, someone says, "Okay, I know that I
had to give someone off because they
were having a baby, but now they're they
want to come back and I don't want to
take them back. What do I do?" My
question is a little different. Okay,
before someone has a baby, they plan on
not coming back to work, right? But
they're going to use the PFL from their
current employer and you know, the last
two weeks of PFL or paid, you know,
maternity leave, they're gonna start
looking for a new job. Should they have
told their employer or not? Okay. So,
many business owners feel sketchy like
you should have told me. I understand
that that that that that's a related
topic that I'll go into a little bit of
detail now on. So, what you refer to as
PFL, it's paid family leave. Eligibility
for paid family leave does differ from
from person from sorry from state to
state. So, for example, there's you know
some states don't even have PFL. I I
know you have a very big audience. I'm
not assuming that everyone in your
audience is in New York and New Jersey.
New York and New Jersey happen to have
PFL, paid family leave. That's the same
thing as maternity leave. It's not the
same as maternity. That's why I wanted
to to elaborate on that a little bit
further. So, um there's a difference
between amount of time off and what the
benefits that they will be allowed while
they are off. Okay. So someone might be
entitled to take off up to 12 weeks for
either having a baby, adopting a baby,
having someone in their family who's
having um a baby, usually a spouse who's
having a baby. Dads are going to be very
happy to hear this. Yeah, exactly. Um
and similarly um if they there might be
other things going on in their life that
would entitle them to take time off to
deal with. So, for example, shalom,
someone's parent is sick. That could be
um a reason to take up to 12 weeks of
time off that might that may or may not
be paid under under PFL under paid
family leave, but that might be another
instance in which someone is entitled to
take the time off. There the there is in
either way, whether they're entitled to
those benefits or not, they're still
entitled to come back to a job. So, you
may feel I feel betrayed. They didn't
tell me about this when they interviewed
that they had that they were pregnant,
that their spouse was pregnant, that
someone in their family was ill, and
that they plan to take this time off,
and now it's being sprung upon me. Uh,
you know, as much as I understand as a
business owner, that creates practical
complications for you, but if the person
is entitled to the time off, then they
have to get the time off. If the person
is coming in and we see this and
honestly you know we do a lot of work
for yeshivas and for for um charitable
institutions not for profofits etc. So
we do have this issue come up very
often. Person takes a job, they work at
it for a year or so and then they have a
baby or their spouse has a baby and they
now want to take the 12 weeks um and
they're entitled to benefits and in New
York for example the benefits are rather
generous um and so um they want to use
it as long as possible and then they
don't want to go back. um that does
happen and the employer feels betrayed
so to speak but that's the person's
right to do that. So, you know, every
situation is going to be different, have
different nuances, but they they're not
because we have at will employment. We
talked about that person, right? Not
obligated to come back to you. So, they
could take their full 12 weeks time off,
then go somewhere else, call you on on
week 11 and a half and say, "I'm not
coming back. You know, I got another job
offer. You know, really sorry, nice to
know you, etc." Not not great for that
for your your relationship, but burning
bridges for sure how to do that. And my
first question, uh, all female teams
because sneas is, uh, is the Hebrew
Yiddish word for modesty. Um, we grow up
in a very, you know, I don't know if the
words conservative with a modest
upbringing. And you'll find that, um,
many women don't want to be smoozing
with men. So, you'll have the women's
team over here, men's team over, and
they try to, they're very professional,
but they don't want intermingling. So,
that's why they don't mix them up
together. Is that allowed?
So, I'm I'm going to be a little
controversial here. So, um I I I
struggle with this because I I' I've
been noticing the trend um more than
noticing. I' I've been very aware of the
trend for a couple of years now. It's
been going on. It's not recent. Um of of
situations in which um they have
separate, as you said, areas, separate
floors for men and women. I I I think
it's very pro problematic from a legal
perspective. Look, um, you know, I'm
aware of the reality, which is that
many, um, business owners, many
businesses certainly, you know, in in in
the Jewish community, um, you know, are,
um, you know, run by religious people
and want to have religious values, and
that's wonderful in a lot of ways. Um,
you still have to comply with employees
don't mind. I'm going to get to that in
a second, okay? But um you know it it's
beautiful and wonderful to have
religious values and incorporate those
religious values at the same time. You
have to be very careful with respect to
the discrimination laws. So for example
um when you talk about dress codes I get
this question often. Can I have a dress
code? I don't want people working for me
coming in in clothing that's not modest.
Um etc. And my response is yes. But you
have to have it for men and for women.
So if you're saying you can't wear
shorts, men can't wear shorts, women
can't wear shorts. If you're saying you
need to wear a long sleeve, then the men
have to wear a long sleeve, too. You're
saying that everybody has to have their
hair covered, fine, then it means
everybody has to have their hair
covered. Am I going to start wearing a
shade? Probably not. But um a wig for
those who don't. A wig. Exactly. So um
that that that's probably not in the
cards, but although I don't know. I'm
starting to lose my hair a little bit,
so maybe. Um but so I think you have to
be conscientious about that. What that
means is that your dress code is going
to say in a generic way that we are you
know we have religious values and we
expect people to to dress modestly and
we expect people to you know be you know
be conscientious about that etc. And you
as I said you can have you know
something that says that you can't have
exposed skin that's fine um etc. So, I
would say that that's fine.
When you have segregated areas, I think
you're talking about you're now dealing
with a very dangerous um situation.
Dangerous in this way from a
discrimination perspective. I can't have
a um a a a a less prominent um role for
um one gender or the other. I can have a
less visible and I don't visible I don't
mean in what the in in the vernacular of
see them. I mean visible in terms of
what the person can do in the company
and what levels they can reach. So, one
of the, you know, areas that I think
about when it comes to this is, is
someone going to say, well, as a woman,
I was only allowed to be on the 11th
floor and not on the 10th floor, and all
the major discussions regarding the
business were hap happen on the 10th
floor. And all of the opportunities for
promotion um and for training only
happen on the 10th floor and not on the
11th floor. So, I do think about things
like that. And I know someone could tell
say well you know we we try to do things
so that you know everyone on the 10th
floor and everyone on the 11th floor
everyone's involved in the business and
all the training opportunities on the
10th 11th floor are the same and great
if you're conscientious about it and
you're you make sure that things are you
know done in an even-handed way. I can
see a way in which it's possible to do
things um having those segregated areas.
On the other hand, I do see a lot of
potential for discrimination claims as
well. And that's why I do think that if
you have a business and you are are are
segregating men and women, I think that
you need to be very thoughtful and very
careful in terms of how you do this. I
don't think it's simply a matter of
okay, all the men on 10th floor and all
the women on the 11th floor. I think you
need to, as I said, training
opportunities, opportunities for people
to be heard. Um,
even something as simple, even something
as simple as, and I'm saying this with a
with a smile because, uh, one of my
children actually works for a company in
which they have separate women area and
he tells me that the women have the
better coffee machine than the men. So,
I'm I'm saying it sort of jokingly, but
it's but but even that is a factor. You
can't you can't do that. that does um
open up uh the possibility of of of a of
a discrimination claim. Wow. Um, but it
wouldn't be such a big issue if they all
have equal rights for promotion and
growth and training. That wouldn't I
mean if all that is there just separate
areas because of modesty,
you know, we're all humans and
it helps make doesn't
chances I I I understand. And and by the
way, I love this conversation because
I've been dying to have this
conversation for a while. Let's get it
out there with somebody. So I'm I'm I'm
I'm really happy to have this
opportunity. I because I I I've given
this a lot of thought um because I've
seen
I know of a particular Jewish
organization that has a code of conduct
that has very thought out careful
processes for you know how men and women
should interact with each other in
modesty because of modesty and that they
can't have um you know text messages
after certain hours and they can't have
one-on-one meetings and things like that
and I understand why those rules were
put in place and I understand the
thought that went into it and and I
certainly, you know, I'm not questioning
any great rebbitic leaders that may have
been consulted about it and they these
are all understandable rules. At the
same time, they give me a lot of pause
because um I know how workplaces work
and I understand what's involved um in
in in the workplace and I know what
happens. And so, you know, the notion
that I if I'm the business owner as a
man and I am not socializing with the
women and so when I have an op an
opening in my the head of my sales team,
I'm thinking about the people that I'm
interacting with all the time and that's
going to be the men in the business. And
I'm not thinking about who on the
women's side would be a good candidate
for this. So, I didn't intend to
discriminate. I intended to go with who
I have most familiarity with, who I
think is the best person for the job,
who's the first person to come to mind.
And so I never considered any of the
female um managers um to be in that
promotion. So I think that that really
does open up, you know, a real pro real
potential for for an issue. That's why
I'm saying I'm not I I'm I'm not sitting
here and saying you as a business owner
can't have a segregated floor and you as
a business owner can't have these rules
in place in terms of interactions
between men and women. What I'm saying
is that these types of rules and these
types of segregations open up very um
you know complicated situations that can
lead to um discrimination accusations,
discrimination lawsuits, etc. I think
it's a real possibility. on the other
side. Uh, a few weeks ago, I'm in the
lobby of a big media company in the
city, and the elevator is right there,
and a few employees walk up to the
elevator. They're going to go grab
lunch. Three guys and a girl, and this
girl is wearing like a jeans material
jumpsuit. They make like a strange com,
oh, nice outfit. She looked
uncomfortable standing there in front of
three guys and they're just trying to
make small talk. So, I understand where
these companies might come from from the
modesty perspective,
but be careful and talk to Kayen first.
Yeah. I mean, look, as I said, we could
definitely have a whole podcast just
just discussing the, you know, these
situations and these rules. What what
what I would say is in my view, I'm not
a rabbi. I'm not somebody who uh who who
who sets religious policy. In my view,
this is more this should be more about
communication.
How do men and women communicate with
each other? How do supervisors
communicate with the people that work
for them? Um and um training with
respect to respect, right? How do you
how do you respect other people? How do
you you know you know work with people
in a way in which you're showing that
respect? To me, that is much much more
crucial and much much more important
than coming up with what I think is an
overly simplified solution of we'll just
segregate everybody. Great. Thank you
for sharing. Can business owners have
their employees put away their phones
when they come in and take collect it
when they leave based on giving them a
phone at their desk? So, if there's an
emergency, a spouse can reach them. Hey,
I'm going into labor. Um, but we all
know when employees do not have their
cell phones, they are way more focused.
They might be upset in the beginning,
but they realize they're going to be a
lot more productive. They're going to
get a lot more work done. So, if you
give an employee a desk on their phone,
a phone on their desk, are you allowed
to tell them, "We don't use our cell
phones at work. here's your box, here's
your locker, leave it there.
There's nothing in the law that I know
of that prevents you from doing that.
So, I think that that's that's a pretty,
you know, e question for me. Um, and I
think from a productivity standpoint, I
completely get it. Uh, you might want to
think about, you know, adding maybe
adding extra an extra break in the day
or an extra, you know, opportunity in
the day for people to check their
personal cell phones in case, you know,
someone doesn't know how to reach them
on their office number. um in case you
know there is an important text from a
family member or a friend that they need
to get to. So I think that just from a
practical perspective that would be
wise. Um but you know there there's
nothing preventing the more common
question I get is you know with respect
to privacy. So, if that was going to be
your next question, which is, you know,
we see this a lot, and I'm sure this
happens to a lot of your um your your
your subscribers, you know, where
someone's using their own personal phone
for business or they have their personal
email on their office computer or vice
versa. Um, correct. So, you know, that
that's a question that we get often. Um,
we very highly recommend having a, you
know, a a written policy in place that
makes it very clear to the employees
that they have no expectations of
privacy. Um, if they're going to be, you
know, using uh any anything personal on
on an office computer, if they are
opening up their personal phone, I'll
say this is a caution for employees. You
should know employees out there um that
if you are using your personal phone for
business that means you are opening up
the possibility that your employer is
going to is going to either require
access to your phone or demand access to
your phone. In some cases may be
entitled to access to your phone. So
that's something you should be aware of.
Oh wow. Yeah. Thank you for sharing. Um
if an employee feels like something's
not right at the office at work, should
they go to HR or should they call you?
I'm smiling when you ask that question
because I can't tell you how many times
I've heard from on the employee side
from people who say, "Well, you just
can't trust HR or yeah, anything I tell
them is just going to management anyway
or they don't do anything." So, uh,
that's that's something I hear often,
which my my HR friends in the audience,
you know, will be dismayed to hear that
that's a that's a a common thing. So um
you know one one of the things that you
know I advise
both employees employers as you heard I
I I talked about a little bit earlier
about having things in writing. So that
applies to employees as well as to
employers. If you have an issue with
something you know you need to document
it and documenting it. So let's just
take an example you know you need to
have um time we used this example
earlier we use it again. you need to
take time off for surgery, your own
surgery, a family member surgery,
whatever it is, you know, you need to,
you know, to put that in writing to
somebody that you asked for it. That
needs to be in writing. Um, and you
know, and the dates, etc. Um, and if
you're denied the ability to do that,
then again, that that should be in
writing. You know, you should not in the
first instance of any problem that
you're having at work immediately
complain to HR. It's just not good on a
practical level. This is not that you're
not legally allowed to do that. Legally,
you can do whatever you want.
We're talking practically here, right?
So, practically speaking, you know, in
terms of communication, your your your
best um approach, you know, should be
communicating to your supervisor in
terms of what's on your mind and what's
bothering you and what you think needs
to be addressed. And you should put that
in writing um just to confirm it. If
it's not being addressed, you know, you
may want to escalate it to human
resources. And here's where this comes
into play. If you don't communicate to
human resources, very often the company
will take the position of if human
resources didn't hear about it, we
didn't know about it and we couldn't
address it, so why are you bothering me?
Right? So, you need to be aware of that.
And certainly when it comes in the area
of you know accommodations for a
disability meaning um talk about the
surgery example before someone says I'm
going in for surgery when I come I'm
I'll return to work in two weeks but I'm
going to need a special chair. I'm going
to need to take breaks every 3 hours.
Whatever it is that's something that you
must go through HR in order for for you
to get that that process. If you need to
take time off to have a baby, spouse
having a baby, whatever it is, you must
go through HR for that. So there are
areas where you must go to HR. There
areas where it's a good idea to keep
them in the loop in the loop. And there
may be times that it just yeah, you
should go to HR, but not in your first
resort. What about HR versus manager for
things like having a baby? Both. One of
them is good HR instead of manager. It
may differ from company to company. Some
companies might tell you in the, you
know, to approach your manager, but I
think it's I think you should still have
HR in the loop. I think it's an
important part, uh, you know, of of that
process. Yeah. I hope you're enjoying
today's podcast. Today's episode is
sponsored by Blackbird Recruiting.
Chad GBT, what do you think about
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You heard it here first. Enjoy the rest
of the episode. Welcome back. Okay, I
want to talk about the world of law
cases, lawsuits. What would you say is
the hardest part of handling employment
law cases? Is there a specific challenge
that you see between employees and
employers face when dealing with legal
issues at work?
That's a really broad question. It is. I
want you to open it up. I appreciate
that. Um, you know, as I sort of uh
hinted to earlier, I mean, there was a
part of my career where all I was doing
was, you know, litigating and and uh,
you know, handling lawsuits. You know,
thank God I've graduated to a point
where I where I give more advice than I
do anything else, which is what I really
love doing. Uh those 45 to minute minute
to an hour conversations I I love to
have with employee, you know, with
business owners, employers, you know,
talk to them about what things they need
to know. I love to do those. Um but the
reality is that many times people come
to us because
they got a notice from the Department of
Labor. they had a a threatening letter
from uh a lawyer from for a for who's
representing a former employee. Um they
get served with a lawsuit. So we have to
deal with that. And the challenging
thing that um that I find is when they
don't have records. We talked about that
already. Um the challenging thing is
that people don't understand
the process and that the process takes
time. And I get this because I'm a
business owner. So I know when you have
a problem, you want the problem to go
away. Just solve it. Get rid of it.
Right? Um so I get it. I totally get it.
Um but
that will not off will not always and
will not often lead to the best result.
You have to be patient. You have to
trust that whoever you have handling the
problem, if it's me, my firm, or some
other firm, who what whoever it is, you
know that you've told us the issue,
you've given us the information that we
need to do it. It's going to take time
and you need to be patient because if
you're patient, hopefully it gets
resolved in a way that's if not positive
for you, at least, you know, the least
amount of negativity. But if you try to,
you know, express impatience and try to,
you know, push things along, then it's
It's not going to go as well. Wow.
You've been doing this for 30 years. Um
I'm assuming you've had scenarios where
things went to court. Mhm. Um what would
you say is the most memorable, either in
a good way or a bad way lawsuit or case
that you've dealt with in your 30 years
doing this?
Well, from a negative perspective, I can
tell you they can know that really
easily, which is, you know, there was
one situation in which, you know,
despite the fact that the our our star
witness, you know, in this case, it took
six years before it went to trial, but
so for six years, he was telling us a
story in a certain way and everything
was there to support the case. and when
he got on the witness stand at trial
completely changed his story and was
very very arrogant toward the jury and
we you know we lost the case for because
of that. I mean wow we were telling a
story and he just got up and just
completely told a different story. We
this is we prepared him. We had him
write everything out. We spent hours
preparing for what it would be like, you
know, testifying at trial and he got up
there and I don't know, I think it was
really an arrogance thing more than
anything. And he just told a completely
different story in a very condescending
way to the jury. The jury hated him. We
spoke to jurors afterwards. You know,
what was it that really, you know, made
you decide the case in this way? And
they said, you know, we just we really
didn't like this guy. He was really just
condescending and arrogant. So, yeah,
that was the most memorable experience
for me. That must have been very six
years. Yeah, I learned a lot from that.
Well, do you have a scenario where
somebody employer or an employee was
suing each other that stands out the
reasons behind it or the biggest number
that they were suing for? Yeah. I mean,
look, the most difficult um cases and
you know, the ones where we've had
success um you know were um in the areas
of of of harassment. I mean, in those
situations, you know, it really there
there are, as in many situations, the
three three stories, right? The, you
know, the the the plaintiff story, our
our client story, and the truth. Um,
those are challenging, but those really
give us an area where if we tell a story
in a compelling way, um, you know,
things, you know, come out where they
should. Um, so that's a really big
challenge. You know, I love a challenge
like that because it allows us to
really, you know, develop. We're
storytellers. That's what we do and in
those situations. And so to really
develop a story and tell it well and
figure out how to do it in an organized
way, in a way in which, you know, that,
you know, people can really understand
what the story is, that's that's really
that's really, you know, very
satisfying. Um, most of the things that
we deal with on a on a regular basis
though, you know, are things that in my
view need to be resolved. And, you know,
that that's what probably what I've
learned most from, you know, these uh
litigation experiences and lawsuit and
trial experiences. That's taught me more
than anything that, you know, yeah, you
can spend, and a lot of these cases do
take years. You could spend years
fighting for the truth and trying to
tell your story. It's going to cost you
a lot of money. It's going to burn up a
lot of your time. It's going to give you
a lot of aggravation and stress. And so
when someone comes to me and says,
"Okay, we had a former employee coming
now. They have a lawyer. They're
threatening to sue us. Help me." You
know, first thing I need to figure out
after I, you know, look at the documents
and hear the story and and I need to
think about, okay, how do we how do we
get out of this mess? because, you know,
if we're going to spend the next five or
six years litigating this, that's not
going to end well for anybody. Um, what
is your take on non-competes? New York
versus New Jersey, both either. Yeah,
non-competes is really another one of
those really complicated um, you know,
areas of law because it's we're we're in
a state right now where we can't we
can't predict what's going to happen.
So,
for those who may not know, a
non-compete is that you you you take a
job with a a company and they say they
want you to sign this document. It says
that after you leave this company,
you're not going to join a competitor
for six months, a year, two years,
whatever it says. And it but it says
other things, too. It says you can't
after you leave, you can't solicit our
customers. You can't take our employees
away. You can't share our confidential
information. So the first thing to
remember is no matter what I tell you
now about non-competes, the second part
of what I just said is still going to be
around it. non-solicitation,
non-solicitation, protecting
confidential information, that's going
to stick around because look, if you go
to work for um someone who has um a
particular
uh you know, way of doing things or
particular um uh technology that you
can't just walk up, you know, pick up
and walk off and give it to somebody
else or use it yourself. So, that that's
not going to change. If you sign
something that says that when you leave
here, you're not going to call the the,
you know, the 10 customers that you work
with on a daily basis and you're not
going to go sell the same product for
someone else to those 10 customers,
that's still not going to be allowed.
So, it's the non-compete that's really
what's been in the news and what's been
sort of in a state of of uh limbo,
excuse me, limbo. Of limbo. Thank you.
um because we had the federal government
said we're going to stop these things,
not going to allow non-competes anymore.
And then it was litigated and that rule
went away. And then we had New York
State say, "We're not going to allow
these anymore. We're going to ban them.
We're going to get rid of them." And the
state senate passed it. Sorry, the
assembly passed it. The state senate
agreed with it. And then it went to
Governor Hokll for a signature. She
never signed it. never became law.
And so now we have a new president, we
have a new administration, and we
figure, okay, it's a Republican
administration. There's no way that
they're going to come back and ban
non-competes. And yet, the first thing
that we hear out of the Federal Trade
Commission, which is the FTC, which is
where this rule came from a year and a
half ago, oh yeah, we're going to talk
about putting those that non-compete ban
back in in effect again. So they're
talking about it again and then we're
hearing out of Albany, yeah, you know,
Governor Hokll is reconsidering and she
might sign that again. We haven't seen
anything yet. So we've been hearing
about that. And then we hear in New
Jersey that, you know, depending what
happens in the election that's happening
there in November, you know, we might
have something happen there, too. So we
just don't know what's going to happen
there. And if your um audience has,
you know, any type of business which
operates in other states, there are
other rules there, too. Illinois,
California, Massachusetts, they have
rules that kind of limit what you can do
with non-competes. So, it's a
complicated area. Um, but it's one that
you should definitely think about if you
have, if you're a business owner, you
definitely need to think about this
because you what one thing you don't
want is you don't want to hire um a star
salesperson and spend a lot of money on
giving them, you know, a nice guaranteed
bonus and a and a nice commission and
they stay with you six months or a year
and then they take the next best offer
and, you know, go somewhere else. So,
you definitely need to think about this
and figure out how to do this in a smart
way. How can employers make sure that
employees feel comfortable opening up to
them about issues and problems without
being nervous about retribution or being
let go or other issues?
That's a great question. Um, and uh, you
know, it's a one that I think about a
lot too. So, this goes to what we talked
about earlier about values, right?
Religious values, moral values. So let's
start with and this translate no
translates no matter what religion you
are be a mench right be a decent person.
So if you're an employer or business
owner like realize that the people who
work for you are people too right and
they want to be treated like regular
people. They want to be treated fairly.
They want to be treated in a certain
way. Um they want to learn. They want to
grow. Yeah. They want to make money
because they want to support their
families for sure. But they want to
learn. They want to grow. They want to
understand what that what they're doing
in their professional life, in their
working life is valuable. Why is
valuable? Um, communication is really
important. Patience is really important.
Um, and take your ego out of it. Yeah.
Um, I find as I get older sometimes, and
I've been admonished not to do this, but
unfortunately, well, fortunately, maybe
I do this anyway. You know, I look at
some of my employees like, okay, like
how would if if my child asks me for
some for something like this, you know,
if they're asking me for a day off to do
this, you know, how would I react? That
helps me sometimes center me. Um, but
I'm told, don't do that by the business
experts because you want to, you know,
treat your employees differently than
you would treat your family members is
not uh always the best approach. But I
do sometimes think in in that way
because I want to be fair because I want
to be more than fair. I want to be
generous. I do want and I want to be
perceived as generous and fair. So it
should be a reciprocal Yeah. Um sit um
relationship. Yeah. Talking about
family. I know you work with your
brother Morty. I do. Um I've had so many
conversations with people who bring
family into the business. I've spoken to
business owners who want to bring their
kids into the business, but first they
say two, three years, go work somewhere
else, then come back. What's it like
working with family? What are things
people can prevent? And what are some of
the serious situations you've been
through um that could have been also
prevented? And what are the hardest
things dealing with family? Working with
family, not dealing. Yeah, that's a
tough one. Um well, it's not a tough one
for me. I mean, I I have a very good
relation with my brother. Um I enjoy
working with him. You know, do we always
agree on everything? No. But we're able
to communicate. So, this goes we're on
the same theme now, communication. What
do you do when you don't agree?
That's a good that's that's an excellent
question. I think we try to reach a
consensus. I mean sometimes we turn to
someone else. Um you know we have not
done this recently but I mean but we you
know there there's a a rabbi who we both
respect who if we had any you know
really major dispute I think we would go
and I think we would go to that person
um to help us. Um but we also have a
business adviser who um a consultant who
we talk to about different issues and
sometimes we get that person's
perspective that help you know that
person sometimes helps us you know reach
a compromise. Um and honestly sometimes
we turn to our own spouses um we turn to
our wives you know to to get involved.
Not always a good idea to get your
spouse involved in a business u because
that does lead to sometimes that does
lead to friction but sometimes to get
another view I think it is appropriate.
Um the challenges I've seen for other
people is where it's not clear in terms
of what each person's role is. I think
that that does pose a problem. Um and
where there are not where expectations
are not met, you know, does become a
problem where one person runs off and
does something without talking to the
other person. That definitely does lead
to a problem, right? Um, I know husbands
and wives who work together very
successfully where, you know, they trust
each other and they um but they but they
also communicate really well. You know,
this is my area. I got this. You don't
have to be concerned about this or can I
run this by you before I make a decision
about it. That's a great approach. Um,
and I've seen some that are less
successful where or not at all
successful where they're not on the same
page and where they do have expect
different expectations and where they're
not communicating. So, I think that
those are all good lessons to learn. I
think one word can encompass all of this
is respect. Yeah, absolutely. Um, great
insight. Yeah. For small business owners
watching this, what are some of the
common mistakes you see them making? Um,
and what are some things they can do to
prevent those mistakes? Well, this might
be controversial, but don't rely on AI
for everything.
Can people use um AI for certain things
to help? Yeah, absolutely. Like
I have a a a cousin who's who's very
involved in in in AI and what he he told
me a couple months ago when we were
chatting about this is AI is a tool like
any great tools. it could be used for
really helpful and useful and um
valuable um resources etc. And but but
if you think that it's going to
substitute for other things, it's not.
So you need to use it as a tool. What I
find um what I'm finding now is that
people are coming to me and telling me
that I'm wrong about something because
they went to chat GPT and they found out
X Y and Z. Um I'm not the biggest uh ego
around I could be wrong on something.
I'm not saying I can never be wrong, but
most most of the time, okay, all of the
time that this has happened to me, um,
they either asked the wrong question,
the chat GPT, in a couple of instances,
chat GPT made up the information or took
it from a source that was not reliable,
etc. So, I don't think that that's an
approach that you can take to rely on.
Certainly don't think you can just go to
chat GPT and say, you know, give me an
employee handbook. um you know, search
the internet for the for the three best
ones and then you know and and then you
know apply it to my electronics
business. I don't think that that's a
success a recipe for success. So
definitely be careful about that. But
look, I mean it all comes down to like
you need to know what you're doing and
you need to not make assumptions about
what's right and what's wrong. You
should talk to people. You could do your
research attach EPD. That's okay. But
talk to people. Talk to other business
owners in terms of what they've
experienced. Talk to lawyers, talk to
accountants, talk to financial
adviserss, talk to people and get
information. And an educated person is
really the best uh person to make these
decisions. Wow, this has been an
incredible conversation. Um, I'm sure
everyone listening to this is really
going to appreciate this podcast. I
think before we finish, I have one last
question. If there is either for
employers or employees, if there's one
key takeaway you would want them to
hear, what would you say is one
important thing that they should know?
Um, definitely what we talked about
earlier about about putting things in
writing is probably the most the most
important thing I would say. Um, I find
that uh that's where disputes happen,
where things, you know, there's a
misunderstanding.
They talked about it. They never put it
in writing. They never Yeah. Wow. Okay.
Thank you. Before we finish, I want to
give the opportunity if somebody does
need to reach you. This camera, where
can they find you?
Um, really, you can go to our website,
bookl.com.
You know, every every way to reach us is
there. Um, it's it's also a great
resource actually. Uh, if you give me an
opportunity to plug, we have a lot of
really great articles there. We have
we've been doing blog posts um for a
while on on different topics and
different developments. We do a monthly
newsletter and it's all on there. So you
can learn about a lot of what we talked
about today and some other topics there.
So that it's a great resource for that,
but that's also probably where you can
find the information to reach me and to
contact me. It's booklawp.com.
Ken, thank you so much. Absolutely,
Tilly. I enjoyed this. Thank you so much
for taking the time to do this with me.
I hope you enjoyed today's episode of
the What It Takes podcast. Please make
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Till next time.
[Music]