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Minimize Costly Penalties and Lawsuits

Complying with federal and state employee regulations is no easy task, especially when you're focused on managing so many other details of your business. Do you know how to avoid costly penalties? And can you mitigate your exposure to potentially expensive legal mistakes that may occur during hiring and firing? Here are a few tips that may help.


Tip #1

Follow federal Fair Labor Standards Act (FLSA) rules and obtain permission from the federal government if you plan to pay someone (e.g. apprentices, messengers, workers with disabilities) less than minimum wage. Penalties — up to $1,000 for each violation.


Tip #2

Keep completed, up-to-date, ready for inspection I-9 forms for all employees. Penalty — up to $1,000 for each employee who has not completed one. Download an I-9 form.


Tip #3

Follow FLSA and state restrictions on child labor provisions. Generally, there are restrictions on the type of occupation and on the hours of employment. Penalties — up to $10,000 for each worked employed in violation.

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