The business owner should. Why? 1,800 different employment codes say they should. More often than not, as a small business owner, your time is valuable. Where will you find the time to learn, memorize, and execute these rules?
- 46% of all small employers with 50 or fewer employees were passively or actively audited by the DOL in 2019. (ERISA, EEOC, FLSA, Wage & Hour, employee complaint etc.)
- 85% of all small employers had some interaction with the Department of Labor in 2019.
- 86% of all small company shutdowns could be directly linked to employment violations.
The top 10 most common employment issues/violations seen by TSG-HR:
- No or outdated handbook
- Irregular or unlawful hiring practices
- Irregular or unlawful terminations
- Irregular or unlawful treatment of employees
- Improper drug testing practices
- Improper handling of a problem employee(s)
- Improper or unlawful handling of employee documents
- No training of staff on basic HR compliance matters such as harassment, safety, etc.
- Improper handling and/or reporting of employee on the job injuries
- Improper or illegal turnover management
This all leads to an average annual loss of $3,200 per employee in productivity and lost time. Also, employee turnover from such an incident averages $76,000 per employee. Worse still, if legal or regulatory action is taken, the average amount spent per incident will cost the employer $64,000. One problem employee, if not handled correctly and to code, can cost a business owner an average of $72,300.