Protect Your Small Business From These 4 Compliance Blunders
Small business owners, whether they have one employee or one thousand, are not exempt when it comes to compliance with specific government rules and regulations. However, most lack the resources to stay on top of things. All Otis Wood Agency clients have access to free HR tools and services and even professional, LIVE HR experts to help them stay out of trouble.
Those HR experts have identified four issues that cause trouble for small business owners. Here they are:
Exempt or Nonexempt, That is the Question
Federal law mandates that most employees receive at least minimum wage for each hour worked and overtime pay for hours worked over 40 in a workweek. Employees classified as exempt, are the exception. The struggle is the correct classification between exempt and nonexempt employees. Determining which employees are exempt vs. nonexempt is NOT as cut and dry as some business owners think, and misclassification can cost thousands in back pay and penalties.
Onboarding Paperwork Snafus
The onboarding process can be cumbersome, and the process of recruiting, hiring, and proper orientation often takes precedence over reporting. Yet some reporting must be done and must be done on time, such as the I-9. If you are hiring in 2020, log into your HR account and look for the New Hire Tool Kit, for help getting all your paperwork done. You will find helpful hints, templates, and state-specific forms.
Super Risky Terminations
Many small business owners assume that as long as they’re not willfully terminating someone for a retaliatory or discriminatory reason, they have no risk. That’s not the case, even in a state where employment is at-will. As a small business owner, you need to protect yourself, and knowledge is the key. Before you terminate any employee, we highly recommend you use our compliance database and make sure you have covered all your bases. When in doubt, ask our live HR professionals for help.
Being Stuck in the Past
Federal and state employment laws change regularly, so never assume that just because you were doing it right yesterday, you are doing it right today. Our clients receive free bulletins informing them of state-specific and federal changes. These bulletins, alone, are an invaluable tool when it comes to protecting your business.
Take Good Care of Your Business
As part of our Want More | Get More philosophy, we offer a full suite of tools and services to help small business owners take good care of their employees. And taking good care of their employees is resulting in high-performance workforces. Give us a call, and we’ll help you as well.