These 5 common business errors that make defending an employment lawsuit harder come from the California Employment Law Report, and they are as true on the east coast as the west. In our experience, smaller and middle sized businesses without a dedicated HR person are particularly susceptible to these mistakes.  All depend in one way or another on paperwork and record-keeping, time for which is usually in short supply for smaller businesses primarily concerned with producing, marketing and selling.

The prudent business will make time for these activities or risk the consequences:

  1. Document, document, document.  If you do nothing else, do this.  Got it?
  2. Establish policies and make sure that employees know about them.
  3. Communicate with your employees about expectations and results.

Becoming a defendant in a lawsuit or the recipient of a notice from the Division of Wage & Hour Compliance is the wrong time to start learning about the things that you should have done. It’s guaranteed to be an expensive lesson.  So start early, be proactive, and be ready when a problem arises.