Top 10 Frequent Work Law Faults Done By Corporations
March 4th, 2011, 7:26 am
The contemporary American workplace is susceptible to numerous federal, state, and local laws that impose strict obligations on businesses (e.g., wage and hour laws and regulations, nondiscrimination legislation, etc.). A lot of companies, especially smaller businesses, usually do not know the scope of those obligations and, therefore, frequently (albeit inadvertently) violate legislation. These violations can cause costly lawsuits, and also civil and criminal penalties. In my experience as being a defense attorney in addition to being a plaintiff’s lawyer, the most frequent employment law mistakes done by organizations are the next (in no particular order):- Misclassifying personnel as independent contractors. Normally, only workers who operate their unique separate companies are “independent contractors.” Few workers meet this test; actually, most personnel are considered “employees” for the law, which suggests they’re eligible for the total selection of workplace protections.
- Misclassifying non-exempt employees as exempt. Normally, all workers are eligible for minimum wage and overtime pay, unless these are “exempt” under state and federal law. The exemption rules (e.g., for executive, administrative, and professional employees) only apply in limited circumstances, however; consequently, many staff members who’re claimed by businesses to become “exempt” in reality have entitlement to minimum wage and/or overtime pay.
- Not complying with state wage payment law regulations. i.e. New York imposes several specific rules regarding how businesses be forced to pay their employees. These rules include providing new personnel with written notice of these rate of pay and regular pay date; prohibiting deductions from wages unless to the employee’s benefit and authorized in writing; requiring written contracts for commissioned salespersons; and providing terminated employees with written notice of the last day’s work, their last day’s benefits, and their right to make an application for unemployment benefits.
- Not using a worker handbook. A worker handbook is a crucial tool for effective employer-employee relations. It notifies employees of the company’s values, policies, and procedures; promotes compliance with labor and employment laws and regulations; so it helps create an orderly, efficient, and transparent workplace.
- Not documenting employee job performance. A well-managed enterprise clearly communicates its employees’ duties and responsibilities (e.g., through written position descriptions), trains and supervises personnel to be sure they are meeting these requirements, and offers regular, objective, consistent feedback (e.g., through written evaluations and, where necessary, disciplinary actions). A deficiency of accurate, complete, contemporaneous documentation can result in liability in the case of a case by a worker.
- Not training supervisors regarding EEO legislation. Federal, state, and local equal employment opportunity (EEO) legislation prohibit businesses from taking adverse actions against employees (e.g., demotion, termination) for reasons not associated with an employee’s job performance, including those determined by an employee’s race, color, sex, age, disability, religion, national origin, sexual orientation, and marital status ( to mention the most typical “protected characteristics”), plus retaliation for an employee’s good faith complaints of discrimination. It is imperative that supervisors learn the way to manage employees without violating (or appearing to violate) these laws.
- Not providing reasonable accommodations for disabled staff members. Most EEO law regulations prohibit businesses from taking adverse actions against workers depending on certain protected characteristics, but disability discrimination laws and regulations also impose an affirmative obligation on businesses to “reasonably accommodate” disabled employees in order to assist them to perform the fundamental functions of the jobs. Such accommodations can sometimes include restructuring job duties, modifying work schedules, or providing assistive devices. Businesses have to give a disabled personnel with needed accommodations unless this would cause an “undue hardship” for the organization (e.g., very costly, too disruptive).
- Not obtaining releases from terminated workers. When terminating a worker, businesses need to get a release that waives the employee’s potential legal claims against the business. The simplest way to get a release is in exchange for an offer of severance (where appropriate). Generally speaking, businesses are not essential to pay for severance to workers (unless necessary for an employment contract or even a collective bargaining agreement). If they plan to do this (e.g., in association with layoffs), they need to require workers to sign a release in substitution for the payment.
- Not protecting confidential enterprise information. Every corporation is dependent upon certain vital, often confidential, specifics of its enterprise operations, including trade secrets, marketing and advertising practices, and customer and client lists. Access to this information must be tied to employees with a “need to know” and may be protected by appropriate non-disclosure, non-compete, and/or non-solicitation agreements (depending on the nature of the information as well as the employee’s position).
- Not consulting a certified employment law attorney. Perhaps the one most significant point to take away from this discussion is always that businesses must consult an experienced employment lawyer to ensure they are in compliance with all the increasingly numerous and complex law regulations that carpet work just like a minefield. Large organizations most often have attorneys and hr professionals working to aid them in this field. Small- and medium-size businesses often don’t. Their biggest mistake is attempting to navigate this minefield by themselves.
So you? Exactly what are your top ten mistakes made in employment law?
About me: Stacia Abner writes for labor law training courses , her personal blog where she writes about her experience as defense attorney to assist workers and companies take care of the elements of employment law.












