legal, business-planI’ve been planning out a particular job board niche that from what it looks like no one is doing, but I want to understand the risks involved. I’m coming from a web developer background more then anything then from a law/management/accountant background.
I’ve been told I may have to worry about people getting hired through the website that are illegal(s) in the U.S. That may potentially have my site hit in court. I would assume in this case I would need to have a lawyer write a ‘Terms of Service’ that would hold up in court explaining the site isn’t reliable for any loss or miss information entered by the employee/employer.
The site would only post jobs, let people apply, notify of openings, let employers review candidates, and perhaps add the ability for employers to send W2s, that would be it.
I want to be sure this project won’t step on anyone’s toe in the long run.
P.S I have a very good and stable understanding of security. i.e form sanitization, system administration (SSH/Firewall). Where I work now we get a lot of malicious attacks. I understand ID theft prevention, and database security will be a big play.
I would not perceive your question to be a show stopper - I mean… you can resolve it, the bigger task ahead of you is to create the application. Do that, then worry about the legalities.
But… let’s say you have your app created and you feel sure you’ll get a few clients to use the site…
Small business don’t start off with support from big accountants, lawyers and bankers. This is both your weakness and a strength. Courts for the most part work on ill intent. If a case was to go thru the courts, they would have to prove that you had ill intent and disregarded help/advice or purposely choose not to investigate due care and attention. Being a small business, it is unlikely (though not impossible) to find a judge who would throw the book at your genuine entrepreneur efforts.
You will not ever be 100% protected from another entity (company or person) from sueing you/your company. You can only go so far to protect yourself - it’s a little like driving a car on the highway. Safety belts and airbags help many, but not everyone for every situation.
So… how to reduce those risks?
You don’t have air bags or belts so closely inspect and do your best to create something similar. Research other services similar to yours, even if they are in a different industry. If your idea relates to something in manufacturing jobs, then try find a job site that exists within your state that deals with manufacturing. The similarity of “blue colour” labour job sites and “white colour” websites will help - their terms and conditions should help you lots. Your Terms & Conditions (and possibly elsewhere on your app) should make clear that unless said otherwise, “Applicants must be eligible to work in the specified location” and that the app is acting solely as an agent introducing work seekers to recruiters and no offer of employment is promised.
Next - visit your local city hall and figure out if you need a license or not.
Review all this every six months too.
But… seriously… I would leave most of this paper chasing until you have a beta app. It will take you alot longer than you might think (I’m 95% finished an app I started 18months ago that I figured would take me six months to complete).
Lastly… A Q&A I previously wrote should interest you follows - I know you are not software QA, but it offers points for you to consider, and potential solutions… Points 1,2,3 and 7 should interest you - though a full read is recommended
https://startups.stackexchange.com/questions/8576/how-to-build-a-startup-freelance-software-qa-in-the-us/8585#8585
Best of luck!
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