Gas prices have been at an all-time high, inflation has impacted pricing in many industries and areas, COVID-19 is still a serious illness, and many products are not available due to product shortages and supply chain disruptions. We are now at the halfway point in 2022.
Employers face enormous challenges in the next days because of all the changes made to retain and recruit workers in a period known for high levels of employee resignations (also called “The Great Resignation”)
Employees feel they have leverage in such a climate because they can bounce around from companies that offer them the “better deal”. Many of these employees see no downside to filing a claim against employers after speaking to lawyers who offer to represent them for no upfront fee.
Moreover, during this political regime governmental agencies were active with the U.S. Department of Labor (“DOL”), having increased resources for “worker protection” activities, and also having information sharing agreements with the Internal Revenue Service (“IRS”) if, for instance, one of the agencies finds a problem with worker misclassification which has an effect on payroll withholdings.
Workplace lawsuits and/or penalties resulting from workplace audits can cause a company to go out of business, or worse, make it a lot more difficult financially.
It pays to spend time with experts in the field to learn about legal obligations. This includes employee retention. These are 10 considerations that may help your company avoid a workplace audit, lawsuit or investigation. They will also likely result in employees staying put a little longer.
1. Regular consultations with trusted employment lawyers will keep you informed about any changes in workplace laws that could affect your business. Employers must be aware that laws, especially in the areas of labor and employment, are constantly changing. As such it is important to keep up with all changes and make adjustments as necessary.
2. You must ensure that you keep accurate and complete timekeeping records and payroll records in order to keep track of employee hours worked and show how employees are being paid. The quality of your records can make or break an audit on wage and hour and/or a wage-and-hour lawsuit.
3. Don’t “hire” independent contractors (i.e. 1099s) unless they’re true independent contractors as defined by applicable federal or state law. A number of government agencies have made misclassification a key point of focus.
4. Pay your employees (non-exempt) at least the minimum wage and overtime. As a matter law, all employees have the right to overtime and minimum wage. Employees who fall under a legally recognized exemption are exempt from this rule. To ensure that you are properly paying your employees, consult with counsel before you use a minimum wage or overtime exception.
5. To ensure that you are fairly compensating employees, audit your pay practices. Equal Pay Act and other discriminatory pay practices claims have been increasing in recent years. If employees performing similar work are paid differently, it may appear to be discrimination. This could lead to a lawsuit.
6. Flexible working arrangements and other accommodations at work are possible, especially for people with disabilities or medical conditions. Your business should allow employees to work remotely during the pandemic.
7. Keep your employees happy and engaged in your company. Keep in mind that unhappy employees are less likely to be sued.
8. Remind employees to review their workplace policies.
9. Pay attention to how your company reacts when employees raise concerns or complaints. Retaliation claims are still one of the most common claims the U.S. receives. Equal Employment Opportunity Commission (“EEOC”)
10. Keep up your efforts to ensure workplace safety. OSHA continues to visit workplaces across the country to inspect those who don’t follow safety regulations.
There are other important things that business owners need to consider in order to comply with workplace laws. Talk to subject matter experts to help your business understand its legal obligations and implement the appropriate workplace policies.
Adam Kemper can be reached via email at [email protected] or via telephone 561-805-3529.
Vegas Legal Magazine published the article How to Avoid a Workplace Lawsuit, Audit Or Inquiry During This “Interesting Time”, Midway through 2022.