The complexity of California and federal law, which often differs or overlap, can lead to confusion and uncertainty over a variety of HR matters.  How confident are you that your employees are properly trained? Do you know which laws apply to your organization? Are you classifying workers correctly? What you don’t know can hurt you and your business.

Small and mid-sized firms are especially vulnerable to the credo “If it ain’t broke, don’t fix it” or “It’s never been a problem before.”  Unfortunately, failing to correct personnel issues and compliance requirements can result in fines/fees into the hundreds of thousands and even jail time for owners/agents.

There are 10 things that employers do to get sued:

  • Making everyone an independent contractor
  • Requiring employees to work through lunch without recording meal periods properly
  • Paying everyone a salary/failing to confirm duties test
  • An internet search in lieu of a background check
  • Having a “Use it or Lose it” vacation policy
  • Allowing employees to work any schedule they want to
  • Keeping employee handbook too simple
  • Withholding an employee’s final paycheck
  • Forgetting to train managers about labor laws
  • Failing to address employee performance problems early

To avoid these pitfalls, be pro-active when dealing with human resource issues. Successful companies are not a result of accidents or luck, but rather an analysis of situations, preparation and proper execution of plans. The activities that focus on human resources management can provide a direct contribution to a company’s performance. This contribution can impact your company’s bottom line as much as a quality product or excellent service.

To learn more about the most common types of employment lawsuits as well as policies and steps that have helped others stay out of court contact us today!