10 WAYS TO STEER CLEAR OF HR TROUBLE
While there is no guarantee that your business will be free from employment law and human resource problems, following these ten suggestions will likely limit the occurrence and cost of workplace liabilities.
1. Create an Employee Handbook and Use It. Create an employee handbook which sets forth employee expectations, defines the “at will” employer/employee relationship, and describes available benefits and workplace rules. Regularly review, evaluate and update those policies. Having a handbook in place and consistently following its procedures limits an employer’s liability exposure, and is typically required for employers seeking Employment Practices Liability Insurance (EPLI).
2. Establish Non-Discrimination and Anti-Harassment Policies. Establish comprehensive non-discrimination and anti-harassment policies that define prohibited conduct, and include at least two avenues for employees to make complaints, a clear investigation and resolution process, and a “no retaliation” provision. To successfully defend against allegations of harassment and discrimination, it is imperative to have such policies distributed and in effect.
3. Conduct Training Sessions. Train managers and HR personnel about what behavior constitutes harassment and discrimination and how to stop it before it becomes a real problem. Courts give employers significant credit when determining liability for harassment and discrimination (and assessing punitive damages) if the employer took active measures to prevent and correct the misconduct, and training is critical to meet that end.
4. Listen Carefully to Complaints. Take employee complaints of misconduct seriously. Listen carefully to an employee’s complaint – regardless of how trivial it may seem – and investigate and remedy it, promptly and thoroughly. Let employees know that they are valued, that their opinions matter, and that they are entitled to work in a place that is comfortable, respectful and free of bias. Reassure employees that no retaliation will occur as a result of their complaint.
5. Document Accurately. If conducting performance reviews, be honest in the assessment. If an employee is placated now, his/her performance will never improve and the individual may be surprised when disciplined or terminated in the future. Without accurate documentation, it is extremely difficult to defend against claims of discrimination and/or wrongful termination.
6. Be Consistent. Apply the same standards for hiring, promotion, discipline and performance to all employees, unless there are legitimate business reasons for different treatment. Do not play favorites, and do not assume that a particular person cannot do a certain type of work. Inconsistent treatment breeds discrimination lawsuits.
7. Determine Which Employees Earn Overtime. Properly classify employees as exempt or nonexempt under the Fair Labor Standards Act (“FLSA”), and do an audit of those classifications regularly. The FLSA establishes categories of employees who are entitled to overtime for hours worked over 40 in a week, and ignoring these classifications can lead to significant liability.
8. Understand Family, Medical and Disability Leave Responsibilities. Learn what leave employees are entitled to when they are disabled, injured on the job, pregnant, give birth, or have a health condition, and implement a leave management process. There are many state and federal laws that govern these issues, and without understanding how they work together, employers may unwittingly provide employees with more or less time off than they are entitled.
9. Hire Carefully. During the interview process, refrain from asking questions that have to do more with the applicant's personal lifestyle than his/her job experience. During the hiring process, employers must be careful not to violate anti-discrimination laws, invade the privacy of applicants or make promises that cannot be kept.
10. Treat Employees with Respect. Do not give employees a reason to feel that they have been misled or mistreated – unhappy employees are more likely to hold a grudge against the company and sue. Juries often sympathize with an employee who alleges being poorly treated or under-appreciated in the workplace, resulting in large verdicts in favor of the employee.
Wasserman Law Can Help. Wasserman Law can counsel your executives, human resources staff, legal team and/or managers as to how to avoid employment liability and maintain an efficient and effective workplace. Taking precautionary measures can be helpful in avoiding pitfalls in the future. Let us help you decide how and where to invest your resources in order to gain the best result.