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There are employment law compliance mistakes many small and midsize businesses make.  Below are the most common.

Misclassification of Employees

Incorrectly classifying workers as independent contractors or exempt employees to avoid overtime pay or other benefits can lead to legal consequences. Ensuring proper classification according to state and federal guidelines is crucial.

Inadequate Record-Keeping

Failure to maintain accurate records of employee hours, wages, and employment history can result in compliance issues during audits or legal disputes. Businesses must keep detailed records as required by law.

Violating Wage and Hour Laws

Not paying minimum wage, failing to pay overtime, or improperly calculating hours worked are frequent violations that can lead to lawsuits and penalties. Compliance with all wage and hour regulations is essential.

Discrimination in Hiring and Promotion

Discriminating against employees based on protected characteristics such as race, gender, age, or disability is prohibited by law. Even if not done intentionally, claims of discrimination can be brought against businesses who don’t implement fair and consistent hiring and promotion practices.

Inadequate Workplace Policies

Lack of clear and up-to-date employee handbooks and policies on harassment, discrimination, safety, and leave laws can leave businesses vulnerable to legal claims. Regularly reviewing and updating policies is necessary.

Mishandling Terminations

Terminating employees without proper documentation, in violation of employment contracts, or without following disciplinary procedures can result in wrongful termination claims. Businesses must adhere to termination laws.

Neglecting Safety Regulations

Not complying with Occupational Safety and Health Administration (OSHA) standards and state safety regulations can lead to workplace accidents, fines, and legal liabilities. Providing a safe work environment is essential.

Ignoring Family and Medical Leave Laws

Failing to provide employees with leave as required by the Family and Medical Leave Act (FMLA) or state laws, or not accommodating requests for reasonable accommodations for disabilities, can result in legal issues. Understanding and adhering to leave laws is crucial.

To avoid these common compliance mistakes, small and midsized businesses should invest in proper expert guidance, stay current with employment laws, provide regular training to managers and employees, maintain accurate records, and create a culture of compliance within the organization.

Marzano Human Resources Consulting works with businesses of all sizes to ensure they are meeting their legal obligations, while also increasing employee engagement.   Businesses should consider reaching out for a no-cost initial consultation.

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