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The Boss Is Dating an Employee. Now What?

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This story appears in the May 2015 issue of Entrepreneur. Subscribe »

Q: My business partner is dating one of his direct reports. To avoid the appearance of a conflict of interest, he wants her to report to me instead. He says that since both parties are single, and the relationship is consensual, it's a private matter. I told him I'd check with our attorney about potential legal issues, but I'm concerned that this is an minefield. What do you think?

A: There are numerous ethical issues involved in an owner or CEO or, really, any manager dating an employee. You and your partner need to see your attorney as well as an HR expert, but first you need to have an owner-to-owner talk about ethics.

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