What is the Risk?

Compliance

The US Department of Labor (January 2020) 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 1,800 employment codes and adjust to an average of 200 code changes each year.

86% of shutdowns are linked to employment violations

Employee Issues

According to the Journal of American trial attorneys (in their 2019 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 (2019) $76,000
  • Per worker’s compensation case: $22,000
  • Per harassment claim: $225,000 (settled $135,000)

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Industry Specialties

Interior of modern restaurant without people, tables and chairs, Shanghai
Food & Beverage
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Government Contractor
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Technology
Healthcare
Service Industry

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