Tag Archives: things to remember before putting up your business

3 Common Employment Mistakes of Small Business Owners

Starting your own business is a great idea until you realize how complicated hiring staff can make the process. You don’t want to spend the extra money to bring a human resource professional, and you may feel like you can handle two or three extra people and schedule. However, it isn’t this easy. Employment regulations are complex, and without a firm knowledge of these areas, your business may be liable for a lawsuit. If this happens you better make sure you have an employment law attorney Orlando on retainer. Don’t make these common business mistakes.

Photo by Andrew Neel on Unsplash

Misclassifying Your Employees

You need to know the difference between hiring an employee and using an independent contractor. When you use the classification of an independent contractor, your company doesn’t have to provide certain benefits or pay certain taxes. However, if you misclassify an employee as a contractor, you could be facing steep state and federal fines as well as an employee-instigated lawsuit.

Not Following the Employee Handbook

Your handbook might be small, but it is extremely important in addressing many of the decisions you or your employees make. The handbook outlines the expectations of employee behaviors and performance, but it also summarizes the benefits that employees are entitled to receive. If your company is brought to court, the handbook can serve as a protection and point of reference to show your company’s compliance with applicable labor laws.

Avoiding Employee Complaints

Even if you have two or three employees, it is important that you address and document all complaints and attempts at resolution. Failing to do so could leave your company vulnerable to discrimination or harassment lawsuits. Be on the lookout for areas that could fall under ADA areas, as well as sexual harassment.

Small companies are just as vulnerable to litigation as large corporations with dozens of employees. It may be in your best interest to work with a third-party HR management to help reduce your risk in these areas.