How Business Owners Can Avoid Employment Claims

Employment litigation is a widespread discipline of the law, one that any business owner should should be both familiar with and wary of.

Employment law ought to provide guideline for how to treat and care for employees. Of course, any small business factoring client ought to go above and beyond the call of the law (for pragmatism’s sake at least), but Manufacturing.net offers a set of “Seven Steps to Avoid Employment Claims” for business owners’ safety:

  1. Provide Employee Handbooks to Make your Rules and Requirements clear
  2. Make Pre-Employment Inquiries (background checks, drug tests, etc.)
  3. Use Accurate Written Job Descriptions (make sure your employees know what they’re in for).
  4. Know the Family and Medical Leave Act (and State Law equivalents) to provide your employees with the proper amount of sick days.
  5. Understand Wage and Hour Laws
  6. Handle Harassment Policies and Investigations in accordance with federal law
  7. Document all Performance Deficiencies, Misconduct, and Employment Terminations

By following these simple steps, you can ensure a healthy, happy workforce that will not sue your business and cost you massive amounts of money. Of course, one thing writer Fred Mendelsohn–the author of the article–forgot to mention was The Factoring Blog’s 8th step to avoiding employment claims:

Always make payroll.

When you fail to provide payroll, you put your company and employees at tremendous risk, which is why, when you have problems with cash flow or meeting basic expenses such as payroll or insurance, it is prudent to factor one’s accounts receivable in order to meet these expenses. Make sure your employees and their families are paid and satisfied, as your business runs smoothly towards growth and greater prosperity. Factoring can do that for you.

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