Employers of all types are faced with a variety of risks on a daily basis. However, one that may not be considered too often is the potential for litigation over employee issues. Especially as our society is so litigious, there are certain precautions that employers need to take in order to reduce Employment Practices Liability claims. Therefore, employers need to heed the following advice and reduce their risk.
Comply with wage laws.
It’s imperative to categorize employees appropriately. This means that hourly and salary workers are paid in compliance with wage laws. Small Business Trends states that there are various criteria used when determining whether an employee is considered exempt or nonexempt:
- Those earning less than $455 per week are nonexempt.
- The basis test means that a salaried employee generally has a specific amount that they can count on each pay period.
- The job duties test generally means that those with managerial duties and the ability to hire and fire are exempt employees.
There are more employee dispute lawsuits than ever before, with almost 9,000 last year alone. Therefore, employers should consult with a legal professional to ensure their pay structure is accurate and in compliance with the law.
While it may be a well-known fact that it is unlawful to discriminate against anyone due to race, gender, sexual orientation, marital status, religion or disability, there are some other factors that could lead to litigation for employers. For example, maternity leave policies, vacation pay, and sick policies all need to be in compliance with state law.
As such, the Equal Employment Opportunity Commission (EEOC) has a list of all the rules and regulations that must be implemented within any business. Once these are read and understood, employers are more likely to prevent discrimination, comply with the law, and reduce their chances of facing an employment practices liability lawsuit.
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