After consulting with dozens of startups and SMBs, I keep seeing the same expensive mistakes over and over. Here's what they are and how to avoid them:

1. No written offer letters

A verbal "you're hired" feels casual and friendly — until there's a dispute about comp, start date, or equity. Always put it in writing. Even a simple 1-page offer letter protects both sides.

2. Skipping the 90-day review

Most founders hire fast and then forget to check in. A structured 90-day review catches misalignment early — before it becomes a 6-month severance conversation.

3. Misclassifying contractors

This is the one that can actually sink you. If someone works full-time hours, uses your tools, and reports to you — they're probably an employee. The IRS doesn't care what your contract says. Get this wrong and you're looking at back taxes, penalties, and lawsuits.

4. No documented termination process

Firing someone without documentation is how wrongful termination claims happen. Even in at-will states, you need a paper trail: performance conversations, written warnings, and a clear final meeting script.

5. Ignoring state-specific employment laws

Remote teams mean multi-state compliance. California, New York, Colorado — they all have unique requirements around pay transparency, leave policies, and termination rules. "We're a small company" is not a legal defense.

The good news: every one of these is fixable with the right systems. That's what I help companies build inside People Ops Pro.