We don't like to scare people. Unfortunately, what you don't know can hurt you in the form of costly lawsuits and government fines when it comes to operating your business without competent HR function.
Some of the top fines that businesses can face are obvious.
For example, when it comes to wrongful termination, the average defense costs are $85,000, and juries typically award $500,000. Since most states practice "at-will" employment, employers think they can let an employee for any, or no, reason. And they're right, to an extent. Unfortunately, they have to be able to prove that they didn't terminate the employee for an illegal reason, which is why proper recordkeeping procedures are so important.
Sexual harassment is another hot topic that's often featured in news headlines, and payouts can rise into the millions, depending on the severity of the harassment. Even though employers may encourage their staff to treat each other with respect, they are responsible for that one employee who many think it's ok to give his female employees a pat on the back(side) for a job well done. Holding Sexual Harassment & Diversity Awareness training annually can not only train staff to avoid such issues, but reflects favorably on the company in front of a judge if an issue should arise.
There are other fines that may not seem so obvious. You may not realize it, but if your filing system isn't compliant, you could be facing thousands of dollars in fines. In fact, the I-9 form alone, which is required for every employee, has fines of $110 to $16,000 for improperly filling out the information.
Negligent hiring fines can also reach into the millions. After a deliveryman attacked a customer, the employer was held liable for $2.5 million for negligently hiring and retaining the deliveryman. No job interview was conducted; no references were requested; and he was not asked to fill out a job application. It was discovered that the deliveryman had an extensive arrest record that should have raised red flags.
Click here to read more about non-compliance issues. Also, sign up for our FREE 5 Costly HR Mistakes to Avoid webinar on April 16. Our passion is protecting small businesses, giving them the tools they need to protect their bottom line from costly lawsuits and government fines. Click here to sign up.
Some of the top fines that businesses can face are obvious.
For example, when it comes to wrongful termination, the average defense costs are $85,000, and juries typically award $500,000. Since most states practice "at-will" employment, employers think they can let an employee for any, or no, reason. And they're right, to an extent. Unfortunately, they have to be able to prove that they didn't terminate the employee for an illegal reason, which is why proper recordkeeping procedures are so important.
Sexual harassment is another hot topic that's often featured in news headlines, and payouts can rise into the millions, depending on the severity of the harassment. Even though employers may encourage their staff to treat each other with respect, they are responsible for that one employee who many think it's ok to give his female employees a pat on the back(side) for a job well done. Holding Sexual Harassment & Diversity Awareness training annually can not only train staff to avoid such issues, but reflects favorably on the company in front of a judge if an issue should arise.
There are other fines that may not seem so obvious. You may not realize it, but if your filing system isn't compliant, you could be facing thousands of dollars in fines. In fact, the I-9 form alone, which is required for every employee, has fines of $110 to $16,000 for improperly filling out the information.
Negligent hiring fines can also reach into the millions. After a deliveryman attacked a customer, the employer was held liable for $2.5 million for negligently hiring and retaining the deliveryman. No job interview was conducted; no references were requested; and he was not asked to fill out a job application. It was discovered that the deliveryman had an extensive arrest record that should have raised red flags.
Click here to read more about non-compliance issues. Also, sign up for our FREE 5 Costly HR Mistakes to Avoid webinar on April 16. Our passion is protecting small businesses, giving them the tools they need to protect their bottom line from costly lawsuits and government fines. Click here to sign up.
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