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[robustpuppy]

Here's a nugget:

Author Florence notes that while bosses may date, flings are destructive. And above all, if an employee says no, don't keep asking. That is harassment. The owners of small companies may well perceive a worker almost like a peer, not recognizing--or
respecting--the gap in power. But "remember that other people believe their job security and personal well-being rest on your
whims," says Florence. "You're the boss, and people look up to you."

Garry Mathiason, an attorney in the San Francisco office of Littler Mendelson(an employment and labor law firm that represents management), came up with a novel way to minimize the fallout. His suggestion: Sign a "love contract." These agreements stipulate that a relationship is voluntary, and that any subsequent disputes will be resolved through mandated arbitration. Though Mathiason admits that the pacts are "about as romantic as a prenuptial agreement," he has drafted more than 500 of them so far.

http://www.inc.com/magazine/20040201/spotlight.html