Compliance
The US Department of Labor (January 2023) noted that 8 out of every 10 businesses are not in compliance with all required employment practices.
- Misclassified (exempt or non-exempt) employees
- Pay issues
- Discrimination
- Overtime policies
- Immigration
- Hiring and termination practices
- Drug testing violations
Companies with less than 50 employees must comply with 1,975 employment codes and adjust to an average of 200 code changes each year.
Employee Issues
According to the Journal of American trial attorneys (in their 2024 annual report), an employer with 20 or less employees has a 77% probability of employment related issues within the next 12 months.
- Companies with more than 20 employees can expect two unemployment-related matters per year. Service industries may expect the most – averaging nine per year.
- Companies with more than 20 employees can expect to have nine employee-related issues per month. Services industries may expect the most at 33, while healthcare will experience the least, at two per month.
Average Costs
- Per turnover $3,200
- Per employment violation (2023) $76,000
- Per worker’s compensation case: $22,000
- Per harassment claim: $225,000 (settled $135,000)
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