Executive Summary: Many businesses start the year without reviewing the agreements they rely on every day. Outdated contracts, missing provisions, and misclassified workers can lead to serious liability. This post covers the core documents to review, including employee handbooks, 1099 contracts, NDAs, and more, and explains why a yearly check-in isn’t just smart, it’s necessary.
A new year is a good time to clean up operations, especially on paper. If you’re running a business in New York and you haven’t looked at your employment contracts, contractor agreements, NDAs, or handbook since last year (or ever), this is your reminder to fix that.
No one likes paperwork. But the minute a dispute arises, the lack of paperwork becomes the biggest problem. We see it all the time:
- Two people go into business together without an agreement.
- A worker files a claim, and there’s no signed acknowledgment of the handbook.
- A 1099 sues like an employee and wins.
These issues are avoidable. So the question is: Are your documents doing the job?
Are Your Contracts Doing What You Think They’re Doing?
Let’s start with the basics: employment contracts, independent contractor agreements, and NDAs.
Employment contracts: If you have key employees, your contract should cover at-will status, termination terms, post-employment obligations, and clear definitions of compensation and duties. If those aren’t in there or are vaguely worded, you’re open to risk.
Contractor agreements: A 1099 who works 40 hours a week under your direction is probably not a true contractor. The IRS uses behavioral, financial, and relationship factors to determine classification. Misclassification can lead to tax audits and wage claims. A clean contract helps, but it’s not a shield if the reality of the relationship looks like employment.
NDAs: Whether you’re hiring or discussing a new venture, an NDA sets expectations early. If you’re sharing trade secrets or plans, this isn’t optional. But NDAs need to be tailored. Using a one-size-fits-all template from five years ago doesn’t cut it.
The question to ask: If this relationship ends tomorrow, does your agreement hold up?
Did You Face Problems Last Year That Better Documents Could Have Prevented?
Every business faces challenges like client disputes, staff turnover, slowdowns, and miscommunication. The real test is whether those issues exposed gaps in your agreements.
Did you lose time or money resolving something that a clear indemnification or dispute resolution clause could’ve covered?
Did someone say, “I didn’t know I was responsible for that,” because it was never in writing?
Did a contractor ask for rights they weren’t supposed to have or worse, get them because your contract didn’t say otherwise?
You don’t need to overhaul everything. You just need to start by asking: where did we struggle, and could clearer language have helped?
What’s Actually in Your Handbook?
If you have employees, your handbook isn’t optional. In fact, courts have held that handbooks can be enforceable if they create certain expectations. That’s a double-edged sword, so your policies better match your practices. Review for:
- At-will disclaimers
- Complaint procedures
- Leave policies (especially with new NYC changes like prenatal leave and schedule accommodation)
- Remote work expectations
- Disciplinary procedures
Handbooks also help with uniform enforcement. If you had trouble last year with inconsistencies, vague write-ups, or unclear PTO tracking, your handbook might be part of the problem.
And don’t forget: every employee should acknowledge receipt of the handbook, in writing. If you’re relying on a verbal “yeah, I read it,” you don’t have a defense.
Are You Treating Contractors Like Employees?
A lot of businesses still hire people as 1099s when they shouldn’t. It’s a cost-saver, but only if you don’t get caught.
The rule is simple: if you control when, where, and how they work, they’re probably an employee. If you provide tools, require exclusivity, or manage their hours, they’re probably an employee. Misclassification opens you up to:
- Wage and hour claims
- Unemployment and workers’ comp liability
- Tax issues with the IRS and NYS
It’s tempting to cut corners here. But misclassifying someone to avoid taxes or benefits will cost you more than just back pay if a claim is filed.
Stop Making Excuses for Your Paperwork
Every business puts off administrative tasks. But if you’re not reviewing your core documents yearly, you’re running on assumptions, not agreements. You don’t need a 50-page overhaul. You need contracts that align with how you operate, handbooks that reflect your current policies, and a clear distinction between employees and contractors. Get it in writing. Get it updated. Start the year off with less risk on your plate.
Need a legal check-in to make sure you’re set up for 2026? Contact Rodriguez-McCloskey, PLLC today.
FAQs
Q: Do I need a written contract with every employee?
No, but it’s smart for key employees. And your offer letters, handbook, and policy documents still need to be clear and consistent.
Q: Can I use the same contractor agreement for everyone?
Not if they do different types of work. And not if you want to avoid misclassification risk. Agreements should reflect the actual relationship.
Q: Do NDAs work for independent contractors?
Yes, but they need to be written properly. An NDA with unclear scope or no enforcement clause is just a suggestion.
Q: Can a handbook protect me in a lawsuit?
Yes, if it’s current, clearly written, and distributed properly. Courts do look at handbooks during disputes.
Q: What should I do if my documents are out of date?
Start with a review. You don’t have to fix everything at once, but identifying your biggest risks is the first step.
