As busy season approaches, accounting firms face intense pressure to scale up staffing, manage remote workplaces, and meet demanding client deadlines. These pressures expose firms to significant employment law risks, many of which have become more complex with new federal and state regulatory changes.
Below is a practical roadmap to help accounting firms mitigate employment-related risks before workloads peak.
The FTC Noncompete Ban: What It Means for CPA Firms
The FTC’s recent rule banning most employee non-competes has already reshaped how firms approach talent retention. While certain partnership and senior leadership agreements may still permit restrictive covenants, firms must transition to enforceable alternatives.
Alternatives include:
- Non-solicitation agreements
- Confidentiality and trade secret protections
- Intellectual property assignments
- Retention bonuses
- Garden-leave arrangements (in some states)
- Robust onboarding and exit procedures
Non-competes may no longer be the default — but firms still have tools to protect themselves.
Wage-and-Hour Compliance
Accounting firms often rely heavily on seasonal staff and junior employees who may not qualify as exempt under federal or state overtime laws.
Common pitfalls:
- Misclassifying “senior associates” or analysts as exempt
- Failing to track remote-worker hours
- Auto-deducting meal breaks that employees do not take
- Overlooking state-specific rules for interns or temp staff
A wage-and-hour audit can prevent expensive class actions.
Remote & Hybrid Work Policies
Distributed workforces create new obligations related to:
- Data confidentiality
- Cybersecurity and device management
- Timekeeping
- State-specific tax nexus and labor law compliance
- Expense reimbursement obligations
Accounting firms must update remote work agreements and ensure consistency across practice groups.
Independent Contractor Misclassification
Firms using contractors for seasonal tax or bookkeeping support should reevaluate those relationships. Many states now presume workers are employees unless strict criteria are met.
Harassment Prevention & Training Requirements
Busy season stress can lead to HR challenges. Many states mandate annual anti-harassment training, with special rules for supervisory employees.
Employment law compliance is not optional for accounting firms that depend on a skilled and increasingly mobile workforce. Proactive policy updates reduce liability and enhance workplace culture. Our employment team helps accounting firms navigate compliance, draft agreements, and prepare for busy season with confidence.