Top 10 Mistakes Managers Make to Create Employment Liability

In working with and advising owners, managers and HR professionals, we have found the top 10 mistakes managers make that can lead to employment liability include failing to document performance issues, treating employees inconsistently, not training supervisors adequately, ignoring employee com-plaints, and misclassifying employees. These errors can expose organizations to lawsuits and compliance penalties.

 

Common Employment Law Mistakes by Managers

1. Failing to Document Employee Performance

• Proper documentation is essential for justifying employment decisions.
• Inadequate records can weaken a manager’s position in disputes.

2. Not Training Supervisors Adequately

• Supervisors must be educated on handling employee issues and complaints.
• Lack of training can lead to mishandling of complaints and increased liability.

3. Ignoring Employee Complaints

• All complaints, especially regarding harassment or discrimination, must be taken seriously.
• Ignoring complaints can result in lawsuits and damage to the company’s reputation.

4. Misclassifying Employees

• Misclassifying workers as independent contractors instead of employees can lead to legal repercussions.
• It’s important to understand the legal definitions and requirements for classification.

5. Not Providing Legally Compliant Meal and Rest Breaks

• Employers must adhere to laws regarding meal and rest breaks.
• Failure to provide these can result in penalties and lawsuits.

6. Incomplete or Outdated Employee Handbooks

• Handbooks should be regularly updated to reflect current laws and policies.
• An outdated handbook can leave employers vulnerable to legal challenges.

7. Terminating Employees Without Proper Documentation

• Documentation of performance issues is critical when terminating an employee.
• Lack of records can lead to wrongful termination claims.

8. Failing to Address Harassment and Discrimination

• Employers must investigate all allegations of harassment or discrimination thoroughly.
• Mishandling these issues can lead to significant legal consequences.

9. Not Reimbursing Business Expenses

• Employers are required to reimburse employees for necessary business expenses.
• Failure to do so can violate state laws and lead to claims.

10. Not Consulting an Employment Law Attorney

• Many employers make decisions based on outdated information.
• Regular consultation with legal experts can help ensure compliance and reduce risks.

 

What are the financial consequences of employment liability for organizations?

Financial consequences of employment liability for organizations can include lawsuits, regulatory penalties, and reputational damage, which may lead to significant financial losses. Additionally, errors in managing employee benefits can expose employers to claims that result in further financial harm.

Most importantly, managers, considered agents by law, create significant liability for owners and stockholders of the organization. It is critical as such that all managers understand the basic do’s and don’ts in ensuring compliance with basic employment regulations. Unfortunately, most of the time, when it reaches the owner’s or human resource manager’s desk, it is too late.

SESCO specializes in developing and training effective leaders and managers to include understanding and complying with complex federal and state employment regulations. Contact SESCO to schedule a brief one (1) to two (2) hour on or offsite session for your managers

 

 

SESCO Attorneys and Consultants review, prepare and revise hundreds of employee handbooks annually from all states and industries/professions. We are considered national experts and as such if you have any questions about regulating employee social media policies, please contact us. We are available to review your current Social Media policy for legal compliance as well as provide a complete review of your handbook’s compliance with federal and state laws. This service is provided at no additional charge to SESCO retainer clients.