Common employment law pitfalls for small business owners

On Behalf of | Jan 31, 2022 | Business Law

The moment when there is enough demand for your product or service that you need to start hiring support is an exciting time. It’s a moment when you can see your progress and your business is growing.

Along with employees come substantial responsibilities. While some of your duties as an employer are relatively intuitive, there are several aspects to hiring employees that many small business owners tend to overlook.

Here’s how you can avoid some of the most common mistakes small business owners make with their employees.

Record management

When you hire your first employee, you may already know them, and it is only a matter of recording their tax forms and other documentation. As your business grows, there will be more paperwork to keep organized.

Keeping your employee files consistent and organized can help you if there is a dispute about when an employee was hired or regarding the terms of their employment.

When an employee leaves, you will still have more records to manage. Whether an employee quits or gets fired, you should keep a detailed record of what happened and why they left the company. If possible, you should conduct an exit interview to have a history of any potential grievances.

Methods for reporting

You hope you never have to deal with a discrimination or harassment issue within your business. Still, it is essential to have a plan and method for your employees to report incidents. As you start to hire employees, it is crucial to get a system in place so your employees have at least one person to report harassment or discrimination claims.

Additionally, you also need to train employees on what they should do and whom they should talk to if they feel like they have experienced harassment or discrimination in the workplace. Employees should feel comfortable and confident in using the procedure you have in place so you can deal with issues quickly.

Keep in mind, plans and organization will support you and your business. When you have a method for dealing with emplitemt issues, you can demonstrate your efforts if there is an issue with an employee.

FindLaw Network