Lateral Thinking

Source: AICPA CPA Insider

Attorney Jason Rosenthal offers several tips for avoiding litigation when making lateral hires:

• Check for conflicts of interest, such as previous work for a business with which your client is negotiating or expert testimony against one of your clients.
• Look into restrictive covenants, such as noncompete or nonsolicitation agreements with a former employer, including restrictions on bringing its colleagues to your firm.
• Find out whether potential lateral hires had access to a previous employer's trade secrets that they may use at your firm.
• Check references, but be sure to get permission first to avoid allegations that you interfered with a prospective hire's current employment relationship.
• Confirm that a lateral hire's licenses are active and check for prior disciplinary actions.
• If permitted by law, conduct appropriate criminal and financial background checks.
• Avoid making potentially defamatory statements about a lateral's current or prior employers.
• If there is a probationary employment period, make this clear from the outset.
• For lateral partners, be sure to make necessary modifications to the partnership agreement.

For the complete article, click here and read “Pitfalls When Hiring Laterals” in the September 14, 2009, issue.

From AICPA CPA Insider, September 14, 2009, www.CPA2biz.com.