Managing the everyday operations of a business is hard enough, but employment disputes make it even harder. Unfortunately, they are more common than you think. Many businesses face a range of employment law issues that they don’t necessarily know how to prevent or resolve.
The good news is that knowledge is power. Awareness of the most common ones and how to both prevent and resolve them may contribute to a far healthier and safer workplace environment for all.
Table of Contents
Employee Misclassification
It can be worth making an appointment with labor and employment lawyer Jeff M. Schagren if you’re being accused of employee misclassification, because the penalties for any business owner can be significant.
Employee misclassification means that you’re treating employees as independent contractors when they’re not. As a result, you’re not providing them with the minimum wage, overtime pay, and other benefits they’re entitled to under the Fair Labor Standards Act (FLSA).
When hiring a new employee or contractor, consider their role in your business to determine the appropriate classification. The U.S. Department of Labor provides a helpful comparison table. When unsure, err on the side of employee classification and regularly review your contractor agreements.
Wage and Hour Violations
Every worker deserves to be paid for the hours they’ve worked and to receive the breaks they’re entitled to. Unfortunately, not all employers make that a priority. Some industries are also more renowned for violations than others, including agriculture, construction, food services, and healthcare.
To avoid being reported to the U.S. Department of Labor for wage and hour violations, ensure an adequate understanding of local wage laws and always keep accurate time records. You should also regularly audit your payroll.
Wrongful Termination
In employment law, wrongful termination is when an employee is fired for reasons that violate federal/state anti-discrimination laws, a breach of contract, or retaliation for whistleblowing. While employees can be fired for any reason in at-will states, employers can’t terminate employment for discrimination, retaliation, violation of public policy, or a breach of contract.
As there can be legal repercussions for unfair dismissal, employers must be mindful of how they choose to terminate a worker’s employment. Always document employment issues, follow clear disciplinary procedures, and ensure all termination decisions are consistent and justified.
Workplace Discrimination
You can’t provide unequal treatment based on protected characteristics, such as race, age, and gender. Yet, every year, millions of dollars are paid out to workers subjected to discrimination. In 2020 alone, the U.S. Equal Employment Opportunity Commission secured a record $535.4 million for workers who were discriminated against.
Knowing how financially crippling and reputation-destroying a workplace discrimination case can be, it’s crucial for your business to understand discrimination laws and strive to avoid them. Implement anti-discrimination policies, provide regular training, and ensure fair hiring and promotion practices for all employees.
Health and Safety Violations
Most employers strive to create a healthy and safe working environment for all employees. However, a lack of knowledge or awareness can mean that it isn’t always the case. As unsafe working conditions can result in injuries, fines, and site shutdowns, prioritizing education and implementing formal safety measures is crucial.
At a minimum, conduct regular safety audits and provide proper training and equipment. You should also encourage your team to report hazards so they can be remedied before they cause injuries.
Harassment
The unfortunate reality is that not every employee feels comfortable or safe at work. Thousands of cases of alleged harassment are reported every year. With moral damage and serious legal liability among the many consequences, it’s important to take instances of possible harassment seriously.
Enforce zero-tolerance policies and provide confidential reporting channels. You should also act quickly on complaints.
A safe and legal working environment for employees is the bare minimum that an employer should provide. If your business has been at the center of any of these employment disputes, or you want to do your best to avoid them, seek the assistance of a labor and employment lawyer.
