Business leaders are challenged with a variety of tasks every day. Whether you handle human resources yourself or delegate them to someone else, your company is bound to make mistakes. Identifying these HR mistakes before they become serious problems can protect your business against costly legal claims.
Here are 3 common and expensive HR mistakes to avoid:
Your employee count doesn’t matter when it comes to compliance. You can be sued no matter what size your company is, which means if you have one employee, you should have a handbook. You protect yourself and your business by having guidelines in place and ensuring that everyone is keeping them.
According to the Department of Labor, the Fair Labor Standards Act (FLSA) “establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.” When it comes to FLSA audits, the government can examine applicable wage and hour issues and determine whether or not you’re compliant. You will want to avoid FLSA audits as best as you can. Here are a few specific tips for avoiding FLSA audits.
Document, document, document! We can’t stress this point enough. Consistently documenting is very important. In the HR world, we recommend that people document anything that happens. If you have a conversation with an employee it is always smart to write up notes from the conversation and email them to a file with a time and date stamp. This can be very beneficial if it is ever called upon later.
Interested in learning more about human resources tips? Click here to watch our 10-minute trainer on the most common and most expensive HR mistakes.