Legal Risks of Hiring Your First Full-Time Employee: A Compliance Guide

A female hiring manager in a modern, open-plan office conducts an interview with a male candidate, both seated at a rustic wooden desk with papers and a laptop.

Executive Summary for Small Business Owners and Nonprofit Directors: Hiring your first full-time employee requires shifting from ad hoc operating habits to formal payroll and compliance structures. Under the Fair Labor Standards Act (FLSA), the default status for employees is “non-exempt,” meaning they are entitled to overtime pay unless specific duties and salary tests are […]