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By Attorney Edward Jesson
When business owners think of employee handbooks, oftentimes they think of it as just one more administrative task that needs to be checked off the list when onboarding a new client. Because there are so many online HR services that will offer an employee handbook as part of their services, it can be tempting to just take whatever they have on offer and call it a day. However, in North Carolina, and many other jurisdictions, the employee handbook is not just a HR document, it’s a legal document which can create legally binding promises between your business and your employee. Often, what you’ll obtain from your online HR service is a generic template, designed to work for thousands of clients over multiple jurisdictions and over many different industries. However, generic, nonspecific language is a risk when it comes to your employee handbook. Employment law is highly state specific; what is required in, for example, California, can be vastly different from what is required in North Carolina. For example, North Carolina’s Wage and Hour Act has very specific rules on what can be withheld from an employee’s final paycheck and under what circumstances a business can withhold those funds. Violating the Wage and Hour Act can result in, among other things, an award of treble damages for the aggrieved employee as well as the business having to pay that former employee’s attorney’s fees—that can turn a small mistake into a big financial headache. One example of an employee handbook that we recently came across discussed final paycheck withholdings and simply (and generically) stated that “state law applies.” In North Carolina, that is insufficient, the employee handbook has to state, specifically, what withholdings may be withheld from that final check. Accordingly, the employer wasn’t able to withhold anything from the paycheck, despite having invested a lot of money in training that the employer wished to recoup. Your employee handbook is one of the most important legal documents your company has. It governs how you treat your employees, how you handle disputes, and how you hold up in court. Delegating it to an HR platform because it's convenient is like using an online will generator because it's fast — it might technically do the job, until it doesn't. And when it doesn’t, there are going to be real issues that arise as a result. If you need an employee handbook reviewed, or need a handbook drafted from scratch, the attorneys at Jesson & Rains, PLLC are ready and able to assist in ensuring it’s compliant with your state’s legal requirements.
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By Associate Attorney Ashley N. Bonomini
Marriage is one of life's most important commitments, but it is also a legal and financial partnership. When most people think of prenuptial agreements, they think of divorce planning, but it is so much more than that. A prenuptial agreement can be a foundational component of a sound estate and business plan. While discussing a prenuptial agreement may not seem romantic, it provides couples with an opportunity to establish clear expectations regarding financial matters and protect their interests before entering into marriage. One of the primary benefits of a prenuptial agreement is the protection of premarital assets. Individuals entering a marriage often have property they wish to keep separate, such as real estate, investment accounts, retirement savings, family inheritances, or ownership interests in a business. Many people are shocked to learn that, immediately upon marriage, your spouse has automatic rights as it relates to inheritance! You cannot legally disinherit your spouse in North Carolina or leave them less than the statutory “elective share,” which is a percentage of your estate based on the number of years you are married, unless you have a prenuptial agreement. Therefore, individuals who expect to receive an inheritance or who wish to preserve family assets for children from a prior relationship often use prenuptial agreements as part of their estate planning strategy. A prenup can help ensure that inherited assets remain separate property and can clarify how assets will be distributed in conjunction with a comprehensive estate plan. This is significant for individuals entering a second (or third) marriage or those with children from prior relationships who want to preserve assets intended for their children or other beneficiaries while balancing the financial needs of a new spouse. Likewise, prenuptial agreements are particularly valuable for business owners. A business may represent years of hard work and substantial financial investment. Without a prenup, questions may arise regarding the appreciation in value of the business during the marriage or whether marital efforts contributed to its growth. A carefully drafted agreement can help protect the business and minimize the risk of costly litigation. This is vital for business owners looking to protect their business and livelihood from distribution to a spouse as part of a divorce or at death. To be enforceable in North Carolina, a prenuptial agreement must be in writing and signed by both parties before the marriage. The agreement should be entered into voluntarily, and both parties should have adequate time to review the terms and seek independent legal counsel. Waiting until just days before a wedding can create unnecessary pressure and may increase the likelihood of future challenges to the validity of the agreement. Ultimately, a prenuptial agreement is not just about planning for divorce. Instead, it is a proactive planning tool that allows couples to make informed decisions about their financial future. Jesson & Rains, PLLC, has recently added the preparation of prenuptial agreements to our service offerings. We understand that discussing a prenuptial agreement can be a sensitive topic. Our attorneys work closely with clients to create customized agreements that protect their interests while promoting fairness, transparency, and peace of mind. Whether you are entering your first marriage, a second marriage, own a business, have significant assets, or simply want to establish clear financial expectations, our team can guide you through the process with professionalism and care. |
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