Get It In Writing - Protect Yourself and Your Business

Today was something of a red letter day in my career. I had to go to small claims court to pursue repayment of a payroll advance and continuing education tuition from a former employee (a service provider but not a massage therapist) of my business. Despite months of trying to reach a written agreement on the actual amount due and a payment plan that was agreeable to both of us, we were unable to resolve the dispute on our own and a lawsuit had to be filed.

Although I am usually pretty darn good about keeping documentation on business agreements and such, I have to admit that I let my guard down a bit with this particular person. She had worked for me for several years and I thought of her perhaps not as a friend per se, but certainly as a colleague I could trust. Thus, other than making the payroll advance and making verbal agreements on how it and the class tuition would be repaid if she left the business, I got nothing in writing. Why? Because I trusted her and believed that she was committed to me and the business for the long haul. I never imagined I'd have to take her to court or fight for what we had agreed to.

The point of me sharing this here is to remind all therapists, bodyworkers and their employers to communicate agreements like this clearly and in writing. Those of us who care for others and give of ourselves so freely often forget to take care of ourselves. We want to believe the best in everyone and don't want to put out negative energy by forcing someone to "sign their life away" or create a document that suggests things might go badly down the road (much like many people are against pre-nuptial agreements). I am here to tell you that creating agreements like these can actually be like preventive care and ward against a much greater hurt or injury to both parties when a business relationship goes bad.

Regardless of which side of an agreement or negotiation you are on, you need to protect yourself and your interests by having written agreements in matters that could later be disputed, especially if they involve compensation or money. It is always a good idea to have a lawyer draw up or review any complex written contracts or agreements to be sure they are within the bounds of the law. But if it is something as simple as a basic IOU or agreement to deliver a particular product or service in exchange for a certain fee, you may be ok to do it yourself. Just do it.

So how'd it all turn out in court? In the end, I actually had enough documentation to get a judgment passed in my favor for repayment of the payroll advance and court costs. But the tuition repayment ended up as a "he said, she said" kind of issue since there was no written agreement in place and was dismissed by the judge. I more or less expected it would end this way but felt like a bit of a dope for not following the same advice I give to my consulting clients and students. (Believe me that will not happen again!) But I do feel vindicated on a legal and moral level and will enjoy the victory even more when I actually receive the repayment in full.

And as an end result of the whole debacle, I've been inspired to share it with everyone here to help you avoid this kind of thing happening to you. I've also learned a lot about the legal process and redefined how I will proceed with this type of issue in the future - should I ever choose to hire employees again:-)

Whatever the case, please take this information to heart and do whatever you need to do to protect yourself, your practice, your clients and your business legally and otherwise. Be sure your auto, home, health, business and professional liability insurance is up to date, get your business records and tax paperwork in order, and get written agreements in place wherever needed. When in doubt, document. And if you need someone to cheer you on or help you get it all organized, give me a call!