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Hiring Policy — Lantern ​

Effective Date: 2026-01-09
Status: Constitutional Document (requires 75% employee vote to amend)

Purpose ​

This document defines Lantern's hiring practices to ensure fair, efficient, and mission-aligned recruitment while respecting candidates' time and maintaining high standards.

Core Principles ​

  1. Respect candidate time: No excessive interview rounds
  2. Fair evaluation: Consistent process for all candidates
  3. Mission alignment: Hire for values and culture fit, not just skills
  4. Transparency: Clear expectations and timelines
  5. Diversity and inclusion: Proactive outreach to underrepresented groups
  6. Kindness as mandatory criterion: All candidates must demonstrate kindness as a non-negotiable requirement

Mandatory Hiring Criteria ​

Kindness Requirement 🔒 ​

Non-Negotiable: All candidates must demonstrate kindness. This is a mandatory criterion that cannot be waived.

What we assess:

  • How candidates treat everyone they interact with (interviewers, support staff, other candidates)
  • Empathy and consideration in responses and discussions
  • Respect for others' time, perspectives, and contributions
  • How candidates discuss past colleagues, managers, and experiences
  • Tone and demeanor under pressure or when discussing challenges

Evaluation approach:

  • Assessed throughout all interview rounds by all interviewers
  • Any interviewer can flag kindness concerns (requires discussion before proceeding)
  • Candidates who demonstrate unkindness are not advanced, regardless of skills
  • Red flags include: dismissive behavior, speaking poorly of others, entitled attitudes, lack of empathy

Why this matters: Kindness is foundational to Lantern's cooperative culture. Skills can be taught; kindness is a core value. We prioritize building a team where everyone feels respected, supported, and valued.

Interview questions to assess kindness:

  • "Tell us about a time you disagreed with a colleague. How did you handle it?"
  • "Describe a situation where you had to deliver difficult feedback."
  • "What do you do when you notice someone on your team struggling?"
  • "How do you handle stress or frustration at work?"

Documentation: All interviewers must note observations about kindness in their feedback. Final hiring decision explicitly confirms kindness requirement is met.

Interview Process ​

Maximum Interview Rounds: 3 ​

Rule: All hiring processes are limited to maximum 3 interview rounds (excluding initial screening call).

Rationale: Extended interview processes are:

  • Disrespectful of candidates' time
  • Often used as artificial gatekeeping
  • Disproportionately harmful to candidates with limited flexibility
  • Rarely provide additional useful signal after 3 rounds

Standard Interview Process ​

Screening (Optional, not counted toward 3-round limit) ​

  • Duration: 15-30 minutes
  • Format: Phone/video call
  • Purpose: Verify basic qualifications, answer candidate questions, set expectations
  • Conducted by: Hiring manager or recruiter

Round 1: Initial Interview ​

  • Duration: 45-60 minutes
  • Format: Video or in-person
  • Focus: Background, experience, motivation, culture fit
  • Conducted by: Hiring manager + 1-2 team members

Round 2: Technical/Skills Assessment ​

  • Duration: 60-90 minutes
  • Format: Practical work sample, pair programming, case study, or role-specific exercise
  • Focus: Job-relevant skills and problem-solving approach
  • Conducted by: 2-3 team members who will work directly with candidate
  • Note: Take-home assignments must be scoped to ≤3 hours and compensated if >2 hours

Round 3: Final Interview (Culture & Mission Alignment) ​

  • Duration: 45-60 minutes
  • Format: Video or in-person
  • Focus: Values alignment, kindness assessment, questions from candidate, team dynamics, final clarifications
  • Conducted by: Broader team (3-5 people) or full team if small (<10 employees)
  • Note: Explicit confirmation of kindness requirement before final approval

Decision Timeline ​

  • Feedback deadline: All interviewers provide feedback within 48 hours of interview
  • Final decision: Communicated to candidate within 5 business days of final round
  • Offer extended: If approved, offer sent within 2 business days of decision

Exceptions ​

Accelerated process (2 rounds or fewer):

  • Internal promotions or transfers
  • Contractor-to-employee conversions with established track record
  • Referrals from current employees with strong endorsement
  • Senior/executive roles where candidate has extensive public track record

Red flag: If process extends beyond 3 rounds, leadership must document why and get majority employee approval to continue.

Family and Friend Hiring Policy ​

Core Principle: Allowed with Guardrails ​

Family and friends CAN be hired, but with safeguards to prevent nepotism, favoritism, and conflicts of interest.

Definitions ​

Family members:

  • Spouse, domestic partner, or equivalent
  • Parent, child, sibling (including step/half)
  • Grandparent, grandchild
  • In-laws (parent, child, sibling of spouse)
  • Any person living in the same household

Friends:

  • Personal friends with social relationship outside of work context
  • Former roommates or close personal connections
  • Anyone the employee has personal financial ties with (e.g., shared investments, loans)

Guardrails for Family/Friend Hires ​

1. Full Disclosure Required ​

  • Before hiring process begins, the referring/related employee must disclose relationship to hiring committee
  • Disclosure logged in shared system visible to all employees
  • Failure to disclose is grounds for disciplinary action (up to termination)

2. Recusal from Hiring Decision ​

  • Related employee CANNOT participate in:
    • Interview process
    • Hiring decision vote
    • Compensation negotiations
    • Performance reviews (ongoing)
  • Related employee CAN:
    • Make initial referral with disclosure
    • Answer candidate's questions about company (if candidate requests)

3. Independent Evaluation ​

  • Candidate must be evaluated by unrelated employees only
  • At least 3 employees with no relationship to candidate must participate in interviews
  • Standard interview process applies (max 3 rounds)

4. Higher Approval Threshold ​

  • Family/friend hires require 75% employee supermajority vote (vs. standard majority for unrelated candidates)
  • All employees must be informed of relationship before vote
  • Anonymous voting required

5. No Direct Reporting Relationship ​

  • Family members/close friends CANNOT:
    • Report directly to each other
    • Have financial authority over each other (budget approval, expense sign-off)
    • Conduct performance reviews of each other
  • If org structure would create reporting relationship, hire is not permitted unless alternative reporting structure is established

6. Trial Period Extension (Optional) ​

  • Employee vote can require extended trial period (up to 6 months vs. standard 90 days) for family/friend hires
  • Provides additional evaluation time before granting full employee-owner status

7. Conflict of Interest Monitoring ​

  • Annual review of all family/friend employee pairs
  • Any employee can flag concerns; triggers independent review
  • If conflicts arise, employees vote on resolution (role change, reporting change, or separation)

Examples of Acceptable Hires ​

✅ CEO's sibling applies for engineering role

  • CEO discloses relationship immediately
  • CEO recused from all hiring activities
  • Engineering team interviews candidate independently
  • 75% employee vote approves hire
  • Sibling reports to engineering manager (not CEO)
  • Quarterly check-ins to monitor for favoritism

✅ Employee refers close friend for customer support role

  • Employee discloses friendship
  • Employee recused from hiring process
  • CS team evaluates candidate on merit
  • 75% employee vote approves
  • Friend works on different shift/team when possible

✅ Two employees get married after both hired

  • Marriage disclosed to team
  • No action needed if no reporting relationship
  • Annual conflict check continues
  • Transparency maintained

Examples of Unacceptable Arrangements ​

❌ Founder hires spouse to handle company finances without disclosure

  • Violation: No disclosure
  • Violation: Spouse has financial authority without oversight
  • Remedy: Terminate arrangement, potential termination of founder

❌ Manager hires friend, participates in interview, doesn't disclose

  • Violation: No disclosure + improper participation
  • Violation: Standard hiring vote used instead of 75% supermajority
  • Remedy: Candidate re-evaluated independently or hire reversed

❌ Parent and child both work at company, child reports to parent

  • Violation: Direct reporting relationship
  • Remedy: Restructure reporting or one party changes roles

Contractor Relationships ​

Rule: Contractors also cannot be undisclosed family/friends of employees.

Application:

  • Same disclosure requirements apply
  • Same recusal requirements apply
  • Contractor approval follows standard contractor voting thresholds (see Contractor Pathway)
  • If contractor converts to employee, family/friend hire rules apply to final conversion vote (75% supermajority)

Anti-Discrimination Commitment ​

Protected Characteristics ​

Lantern does not discriminate based on:

  • Race, color, ethnicity, national origin
  • Religion or lack thereof
  • Sex, gender identity, gender expression
  • Sexual orientation
  • Age (except where legally required, e.g., minimum age for employment)
  • Disability (with or without reasonable accommodation)
  • Veteran or military status
  • Genetic information
  • Marital or family status
  • Pregnancy or parental status
  • Political affiliation or beliefs (except where directly opposed to company mission/values)
  • Any other protected class under applicable law

Affirmative Commitments ​

✅ Proactive diversity recruiting:

  • Job postings shared with organizations supporting underrepresented groups
  • Blind resume review where possible (names, photos, schools redacted initially)
  • Diverse interview panels

✅ Accessible hiring process:

  • Accommodations provided upon request (no questions asked)
  • Flexible interview scheduling
  • Alternative assessment formats if standard doesn't work for candidate

✅ Transparent compensation:

  • Salary ranges published in all job postings
  • Pay equity audits annually
  • No salary negotiation (offer is best offer to prevent bias)

Compensation & Offers ​

Salary Ranges ​

  • All job postings include salary range (within Lantern's 75K-225K min/max)
  • Salary determined by:
    1. Role requirements and market data
    2. Candidate experience and skills
    3. Internal equity (similar roles, similar pay)
  • No negotiation: First offer is best offer (prevents bias favoring aggressive negotiators)

Benefits (Same for All Employees) ​

  • 100% FREE health insurance (employee + family)
  • Unlimited PTO (minimum 4 weeks encouraged)
  • 4-day work week (32 hours standard)
  • Profit sharing (equal distribution)
  • Employee-ownership stake
  • See Employee Rights Charter for full benefits

Offer Timeline ​

  • Offer extended within 2 business days of approval vote
  • Candidate has 7 days to accept (extendable upon request)
  • Start date flexible based on candidate needs (standard is 2-4 weeks notice)

Internal Mobility & Promotions ​

Internal Candidates First ​

  • Job openings posted internally for 1 week before external posting
  • Current employees given priority for new roles (if qualified)
  • Internal transfers/promotions use accelerated interview process (1-2 rounds)

Promotion Process ​

  • Employee expresses interest or manager nominates
  • Clear criteria documented for promotion
  • Internal interview (1 round) to confirm readiness
  • Majority employee vote for approval
  • Immediate salary adjustment (no waiting for annual review)

Referral Program ​

Employee Referrals Encouraged ​

  • Employees can refer candidates from their network
  • Must disclose relationship (family, friend, or professional acquaintance)
  • Referrer recused from hiring if relationship is family/close friend
  • Referrer can participate if professional acquaintance only (former colleague, industry contact)

Referral Bonus (Optional) ​

  • Employee vote can establish referral bonuses for successful hires
  • Bonus paid after new hire completes trial period
  • Equal bonus for all referrals (no tiers)
  • Example: $1,000 per successful hire (employee vote determines amount)

Trial Period & Conversion to Employee-Owner ​

Standard Trial Period ​

  • Duration: 90 days (3 months)
  • Benefits: Full benefits start immediately (health insurance, PTO)
  • No ownership yet: No voting rights, no profit sharing during trial
  • Purpose: Both parties confirm fit

Extended Trial (Family/Friend Hires) ​

  • Employee vote can require up to 6 months trial for family/friend hires
  • Provides additional evaluation time

Conversion to Employee-Owner ​

  • At end of trial, employees vote (majority required)
  • If approved:
    • Full employee-owner status granted
    • Voting rights activated
    • Profit sharing begins
    • Ownership stake vested per Employee Rights Charter
  • If not approved:
    • Employment terminated with 2 weeks severance
    • Clear feedback provided

Trial Period Expectations ​

  • Clear performance goals documented at start
  • 30-day check-in (early feedback)
  • 60-day check-in (mid-point)
  • 90-day evaluation (decision point)
  • If issues arise, can extend trial up to 30 additional days before decision

Termination & Offboarding ​

Termination During Trial ​

  • Either party can terminate at will during trial period
  • 2 weeks severance provided
  • Feedback conversation (optional for candidate)

Termination After Employee-Owner Status ​

  • See Employee Rights Charter Section 7.3 for performance management
  • Termination for cause: Documented performance issues, PIP process, employee vote
  • Termination without cause: Requires 75% employee vote
  • Severance:
    • For cause: 1 month minimum
    • Without cause: 3 months minimum
    • Company closure: 6 months

Monitoring & Enforcement ​

Annual Hiring Review ​

  • HR/operations reviews all hires annually
  • Reports to employees:
    • Diversity metrics
    • Salary equity analysis
    • Family/friend hire outcomes
    • Interview process compliance (3-round limit)
  • Employees vote on any needed policy adjustments

Violation Consequences ​

Undisclosed family/friend hire:

  • Investigation by independent employee committee
  • If confirmed:
    • Referring employee: Written warning → suspension → termination (escalating)
    • New hire: Re-evaluation by independent committee or hire reversed
    • Financial conflicts: Immediate remediation required

Discrimination or bias:

  • Immediate investigation
  • Mandatory bias training
  • Escalating discipline up to termination
  • Legal review for compliance violations

Excessive interview rounds:

  • Leadership documents justification
  • If pattern of >3 rounds, process audit triggered
  • Policy reinforcement and correction

This document provides internal policy guidance. It is not legal advice.

Consult legal counsel to ensure compliance with:

  • Federal, state, and local employment laws
  • Anti-discrimination regulations (EEOC, FEHA, etc.)
  • Wage and hour laws
  • Immigration and work authorization requirements
  • Conflict of interest regulations specific to your jurisdiction

Amendment Process ​

This policy is a constitutional document:

  • Requires 75% employee-owner vote to amend
  • Annual review during employee governance meeting
  • Amendments proposed with 30-day review period
  • Anonymous voting required

Final Note: Hiring is one of the most important decisions we make. These policies ensure we build a team aligned with Lantern's mission while respecting all candidates and maintaining fairness.

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