An Interview With Chad Silverstein
Misclassifying independent contractors. Simply referring to a worker as a contractor doesn’t automatically make them one. Determining whether a worker is an employee or independent contractor requires an individualized assessment of relevant factors. Misclassification can result in significant legal and financial consequences, including fines and tax obligations.
In today’s fast-paced business world, the complexity of legal matters can often be overlooked, leading to significant repercussions for businesses of all sizes. From startup ventures to established corporations, the absence of legal guidance can result in critical errors that affect growth, operations, and sustainability. These mistakes range from issues with contracts and intellectual property to compliance and employment law, each carrying the potential for financial loss and reputational damage. I had the pleasure of interviewing Allie Levene.
Allie Levene is the founding attorney of Levene Legal PLLC, an employment law firm focused on helping small business and nonprofit companies with proactive legal advice. Allie’s approach to flat fees helps her stay true to her unique style of client service as an untraditional lawyer for untraditional businesses.
Thank you for joining us. To start, could you share your “origin story” with our readers? How did you begin your career? What challenges did you face in the early days? How did you overcome them?
I am a born and bred Husky, growing up in Stamford and graduated from the University of Connecticut Honors Program. I then got my law degree from Wake Forest University School of Law.
After law school, I returned to CT to practice law and raise my family. I have twin daughters and twin dogs (just kidding about the twin dogs).
My experience ranges from the boardroom to the courtroom — and the classroom. Before founding Levene Legal, I served as in-house and outside counsel for several Connecticut businesses, including many small businesses and nonprofits. I’ve represented clients in litigation and administrative proceedings related to employment, civil rights, and general liability. Time and time again, I kept noticing that many of the issues my clients faced could have been avoided with proactive legal services. Thus, Levene Legal was born. While lawyers get a bad rap for inflating invoices, I see so many issues that could have been avoided by proactive legal services instead. Most don’t invest in these proactive services because of concerns with being nickled and dimed.
In addition to serving as founder and attorney at Levene Legal, I am also an Adjunct Professor for Wake Forest University’s Master in Studies of Law Program, where I teach business professionals the legal tools and framework needed to navigate risk, compliance, and the rapidly changing legal environment.
Is there a particular book that made a significant impact on you? Can you share a story or explain why it resonated with you so much?
The Best Loved Poems of the American People was my grandfather’s favorite book. When I was growing up, we often read poems from the book at dinner. My grandfather taught me public speaking by having me recite poems in the book to him. Now, my dad is teaching my children to recite those same poems.
Do you have a favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life or your work?
“If they don’t give you a seat at the table, bring a folding chair.” — Shirley Chisholm. When I started my own firm, I worried whether people would be receptive to my approach since it is different than traditional law firms. There were times when my nerves got the best of me, so I waited for people to approach or connect with me. To no one’s surprise, that isn’t a great business plan. If you want a seat at the table, you can’t wait for someone to invite you. You have to make your own seat. If there is a room that I want to be in or people that I want to get in front of, I am going to put myself there so that I can build my business and get my message out.
How have you used your success to make the world a better place?
Making the world a better place starts in our local communities. Small businesses and nonprofits are the cornerstones of these communities. For many of these organizations, proactive legal support may be unaffordable or impracticable. My aim is to provide those organizations with legal services that are accessible and affordable so that they can continue serving their communities.
Ok, let’s now turn to the central part of our interview. What is the most common legal mistake you see businesses make due to the lack of proper legal counsel, and what are its potential consequences?
One of the most common legal mistakes I see is the belief that “our business is too small to worry about that.” Many entrepreneurs, especially those with few or no employees, assume that legal compliance is only a concern for larger companies. However, regardless of size, every business must be aware of its legal obligations. Whether you’re a solo entrepreneur or a Fortune 500 company, staying informed and compliant is crucial.
Can you share an example where early legal intervention could have significantly altered the outcome of a business dispute or challenge?
Effective risk management starts with a business’ foundational documents, whether that be an operating agreement for an LLC or bylaws for a corporation. It is common for businesses to use templates or form documents. I’ve seen numerous instances where this leads to disputes among owners because the document doesn’t accurately reflect the intentions of the parties, or it creates a framework that is impractical for the business to follow. Working with a lawyer can mitigate these risks.
How do changes in digital technology and online business practices complicate legal issues for businesses without dedicated legal advice?
Often the pace at which new technology comes to market leaves smaller businesses without the legal advice and protection they need. Companies might feel excited to leverage new technology, and they should, but companies also need to be aware of the risks and rules that go alongside its use. Before utilizing a new technology, companies should:
- Assess any risks involved with use of the technology
- Understand any legal obligations and rules that will need to be complied with
- Draft policies regarding the use of the technology to ensure that use of the technology is compliant
In your experience, how does the absence of legal counsel impact a business’s approach to contracts and negotiations, and what advice would you give to mitigate these risks?
A business is only as strong as its contracts. Without legal guidance, a business runs the risk of having contracts that are poorly drafted or missing important provisions which can expose the business to significant financial and legal consequences. Working with a lawyer to draft contracts mitigates risks associated with contracts.
What legal pitfalls do new businesses often overlook during their initial setup and growth phases, and how can they proactively address these issues?
One of the most significant pitfalls new businesses often overlook is treating their foundational documents as static. They create operating agreements, employee handbooks, and other key documents but fail to update them as the business grows or evolves. With growth, comes additional or different legal obligations. Additionally, laws and regulations are constantly changing. It is important for businesses to regularly review and update their documents to ensure they reflect both the current operations and legal requirements.
Here is our main question. Could you list and briefly explain “Top 5 Mistakes Businesses Make Without Legal Counsel” based on your experiences and insights? If you can, please share a story or example for each.
1 . Choosing the appropriate entity type. The available entity types and the rules associated with them vary by state. It is important to select the type that fits the needs of the business and complies with any associated requirements. For example, businesses offering professional services, such as medical practices or law firms, often need to establish a professional LLC or corporation in many states. These entities have additional requirements, such as ensuring that all owners are licensed to provide the services.
2 . Clearly establish and document the roles of each owner. When roles and responsibilities aren’t clearly defined in writing, it can lead to misunderstandings, confusion, or even disputes as the business grows.
3 . Misclassifying independent contractors. Simply referring to a worker as a contractor doesn’t automatically make them one. Determining whether a worker is an employee or independent contractor requires an individualized assessment of relevant factors. Misclassification can result in significant legal and financial consequences, including fines and tax obligations.
4 . Not having an employee handbook. While many laws require employers to implement specific policies, there is no law that says you must have an employee handbook. But whether you have one employee or one thousand, your business should have an employee handbook. A handbook is a valuable tool that helps foster workplace culture, increase operational efficiency, and ensure compliance. When creating an employee handbook, it’s important to remember that one size doesn’t fit all. Beyond making sure the policies in your handbook are compliant, it’s crucial that they align with your business’ needs and reflect its values and culture.
5 . Entering into unfavorable contracts. Contracts are often bogged down with a lot of legalese. It is important for businesses to understand what they are agreeing to and negotiate terms that are favorable to them.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good for the greatest number of people, what would that be? You never know what your idea can trigger.
Be authentic and kind, as you never know what someone is going through. Small acts of kindness can make a big difference in someone’s day.
As we wrap up, how can our readers follow your work?
I welcome the opportunity to connect on LinkedIn or people can check out www.levenelegal.com.
Thank you for these fantastic insights. We greatly appreciate the time you spent on this.
About the Interviewer: Chad Silverstein is a seasoned entrepreneur and Thought Leader with over 25 years of business experience. He has founded, operated, and exited multiple companies and now builds into a handful of high impact CEOs. Chad has launched multiple online communities, including a recent leadership development platform, and also serves as a strategic advisor for Authority Magazine’s thought-leader incubator program.
To learn more and connect with Chad visit: chadsilverstein.io
Allie Levene Of Levene Legal On The Top 5 Mistakes Businesses Make Without Legal Counsel was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.