5 Tips to Protect Your Company from Wrongful Termination Lawsuits

Most jobs are considered to be “at will” employment, but employees may still be able to sue an employer if the reason for termination is determined to be illegal. Unfortunately, termination is something that nearly every workplace must deal with, so it’s important that this matter be handled with delicacy and professionalism. The following are a few tips that can keep a workplace safe from wrongful termination lawsuits.

1. Communicate Regarding Expectations

Letting employees know what’s expected from day one can help to prevent performance issues and protect an employer if an employee is fired for failing to meet expectations. Of course, regular feedback should be given so that employees know whether or not they’re meeting expectations. If an employee is consistently warned about performance issues, it should be no surprise when termination follows.

2. Keep Great Documentation

Even if an employee is alerted to issues with performance, tardiness, or behavior, it can be difficult to prove that this feedback was given if there’s no documentation. Keeping great records can not only help to protect an employer from wrongful termination, it can also improve transparency and communication regarding ongoing issues. This can in turn improve consistency and organization, preventing problems from several angles.

3. Be Compassionate During Terminations

Being fired has been identified as one of the most stressful things that can happen in a person’s life. When the time comes to terminate someone, no matter what the reasons for the termination, being compassionate can help to ease the inherent tension in the situation. How an employee feels during and after the termination can be a big factor in whether or not the employee feels the need to pursue legal action.

4. Purchase Liability Insurance

Liability insurance is an added expense for the business, but may help to save dollars if an employee sues the company for wrongful termination. Not all liability insurance is the same, however. It may be prudent to make sure the option still exists to defend against a lawsuit and avoid a settlement, even if liability insurance is available to help pay settlements when they are found to be the best course of action.

5. Help Employees with Next Steps

Employees that find new jobs very quickly after termination usually don’t sue for wrongful termination. For this reason, it can be beneficial to assist employees with next steps as part of the termination process. Providing a reference or helping with networking, especially in cases where an employee was let go because of downsizing, can help the employee to move forward fast and prevent stress-inducing downtime.

Termination can be difficult for both employers and employees, so following certain guidelines can ease stress of the situation and prevent the hard feelings that sometimes lead to wrongful termination lawsuits. By detailing expectations and establishing a consistent chain of events that happens prior to termination, employers can protect themselves from liability. Employees may also feel more secure knowing what to expect and seeing that other employees are held accountable.

Legal Requirements to Fulfill Before Hiring Employees

Your business may be raring to hire its first employee, but have you taken all the necessary steps to set yourself up as a lawful employer?

Beyond the sheer decision of whether to add new employees to your business, there are several steps required by the federal and state government that must be taken before you can hire someone.

Here’s a look at 10 legal requirements every employer must do before taking on a new hire:

1. Apply for an EIN.

Every employer—even if you just employ one person—is required to have a federal Employer Identification Number (EIN) that serves as the entity’s tax ID. The Internal Revenue Service (IRS) offers several ways to apply: The fastest and preferred way to file is online using the Internet application, which allows you to receive your EIN immediately.

But you can also apply by phone, standard mail or fax. All you need to apply is the taxpayer ID number, such as the Social Security number, of the principal officer or owner of the company and basic information about the company, such as whether and how it’s incorporated.

2. Register with your state’s unemployment insurance office.

For every employee you hire, including the first one, you will need to pay unemployment taxes to your state. This generally requires registering with the state office that oversees unemployment insurance and then reporting quarterly wage details of each employee along with making the required payments into the fund. The taxes can typically be paid electronically.

Each state has its own rules and deadlines for payments, so it’s important to familiarize yourself with your state’s rules. All states now have online resources to inform employers on their requirements regarding unemployment insurance. Do a Google search for “unemployment insurance,” “employers” and your state’s name to find your state’s website with that information.

3. Verify each prospective hire’s eligibility to work.

Before you hire someone, you need to verify that they are who they say they are, and that they are legally able to work inside in the United States. This is done through filling out the U.S. Citizenship and Immigration Services’ Form I-9 with the new worker after they’ve accepted the job offer.

Along with filling out the form, the new employee will have to provide an original document (such as a U.S. passport) or documents (such as a state driver’s license and a Social Security card) that prove their identity and legal status to work in the U.S. You’ll need to examine the documents for authenticity (and perhaps photocopy them). A Form I-9 must be completed within three days of a worker’s first day on the job.

You don’t need to file Form I-9s with USCIS, but you will need to have them on file for three years after hire (or one year after employment ends, whatever is later). It is best to keep all your Form I-9s in a file or binder that only a few people in human resources are able to access, according to the Society for Human Resource Management. You’ll need to be able to produce I-9s should Immigration and Customs Enforcement come calling.

4. Look into your state’s workers’ compensation insurance rules—and get coverage.

Most states require employers to carry workers’ compensation coverage in case an employee gets injured on the job, though some exempt very small employers. It’s important to find out your state’s particular rules and get the required coverage. This database gives a brief summary of each state’s worker’s compensation rules along with links to the applicable state website where you can find more detailed information.

5. Report new employees to state registry.

You will want to keep employee records—such as full names, contact information and Social Security number—for your own administrative purposes. But you’re also required by law to collect that information.

Federal law requires employers to report basic information on new employees within 20 days of hire to the state in which the employee will work. (Some states have even tighter deadlines.) This information is put into the National Directory of New Hires that is used to locate and withhold income from people who owe child support.

The information required includes the new employee’s full name, address and Social Security, your EIN and address and the employee’s date of hire. Most employers collect this information by using an employee information form that all new hires must fill out. (Read eight tips for creating an employee information form.)

6. Set up a payroll and tax withholding system.

You’ll need to withhold federal and state income taxes, as well as federal Social Security and Medicare payroll taxes, from each employee’s paycheck. A reputable third-party payroll provider makes all of this this easy by providing you with a solution in which you can simply type each employee’s compensation, employee benefit deduction and tax withholding information into the system and it will automatically create regular paychecks (paper or electronic) for you while deducting the correct amount for each type of tax withholding for each pay period.

Many large payroll providers also bundle in extra services, such as human resources. Make sure to thoroughly review your options and find a payroll provider that meets all your needs at the right price. You’ll want to find a payroll provider that also has strong customer service and support in case you encounter any problems or have questions.

7. Have all employees fill out form W-4.

Before you can start paying an employee, you need to know how many “allowances” he or she wants withheld for taxes. The more allowances an employee decides to take, the less tax that will be withheld from their paycheck.

Again, payroll providers typically provide a W-4 form and make it easy to enter the information into the system. You just have to ensure every new hire fills it out and submits it. You can also download the W-4 form from IRS.gov.

8. Get and post employee notices.

There are a number of federal labor laws that require employers to post their requirements in conspicuous places in the workplace so that workers understand their rights under the law. For example, you’ll likely need to display a poster about the Fair Labor Standards Act and its rules establishing a minimum wage, overtime pay rules, child labor restrictions, nursing mother protections and more.

What you’re required to post depends on such factors as the size and nature of your business, which state you’re in, whether you have federal contracts or employee disabled or foreign workers, and more. The U.S. Department of Labor has a FirstStep Poster Advisor that will guide you through a series of questions and then provide you PDFs of the posters you likely need to display.

Also note that individual states may have their own poster display requirements. So it makes sense to also contact your state’s labor department for guidance. The U.S. Department of Labor keeps an online contact list of state labor offices.

9. Comply with OSHA rules.

Employing workers also means that you must comply with the federal Occupational Safety and Health Administration (OSHA) and its rules, which go back to the Occupational Safety and Health Act of 1970.

OSHA rules cover a variety of workplace conditions. Think having safe tools and equipment, safe use and maintenance of the equipment, safe handling of hazardous chemicals and much more.

You’ll need to use codes, posters, labels and signs to warn your workers about dangers, as well as provide them necessary training and medical examinations. The OSHA poster, or its state-level equivalent, must be displayed in a prominent workplace location.

10. Establish any necessary employee benefits.

Small businesses with fewer than 50 full-time-equivalent (FTE) employees are exempt from the Affordable Care Act (ACA) mandate that requires larger businesses to carry health insurance for their employees or pay an annual penalty. That said, the federal government offers incentives for small employers who do offer insurance.

Employers with fewer than 50 FTE employees can get their employees insurance through the Small Business Health Options Program (SHOP) exchanges. Those with fewer than 25 FTE employees can qualify for tax credits worth up to 50% the cost of the health insurance premium.

Depending on your industry and market, offering health insurance to employees may be a smart, competitive move even if you’re not required by law to offer it. Several states are also in the process of enacting regulations that will require employers who don’t offer their employees a standard retirement plan—such as a 401(k) or pension—a state-sponsored retirement plan.

California, for example, is phasing in rules requiring employers with five or more employees to either automatically make IRA payroll deductions for each employee through its CalSavers Program or offer an employer-sponsored retirement plan.

Covering Your Bases

Though these are the main steps employers must take that are required by federal or state law, there are other smart things to do before you start employing people. These include writing an employee handbook, so there are no questions about your rules and protocols for employees (even your first hire), and creating a personnel file for every employee.

While keeping personnel files is not technically required by aw, it protects you if you ever get sued by an employee. It also makes it easy for you to quickly find any relevant information about an employee, including their basic information, work and performance history, and benefits enrollment information, and workplace injury history.

Medical records, any disciplinary actions taken against the employee, and I-9 forms should be kept outside the personnel file. (Nolo offers tips on what should—and shouldn’t—go into an employee’s personnel file.) Once you create personnel files, it’s important to have an organized and consistent system for maintaining those files. For example, you’ll need to limit who can access the files to just supervisors of the employee. States also have various rules for how much access employers must give employees to their personnel files, if requested.

Before you hire, it’s essential to thoroughly review all the required steps you need to ensure you’re not exposing yourself to legal problems. The payroll provider you choose to go with may be able to help you with several of the steps, depending on the level of service you choose.

Once you get the right processes and procedures in place, adding new employees should be much easier and faster. It’s just getting set up in the first place that takes time.

How to Conduct An Internal Form I-9 Audit

When conducting your internal I-9 form audit start off by outlining your procedure and how you plan to conduct the audit

For Section Two of the I-9 form you’ll need to ensure one document from List A is included and completed or one document from List B and one from List C are listed and completed

When conducting your internal audit, Section Three of the I-9 form deals with reverification which only applies if evidence of employment authorization (List A or List C document) presented in Section two expires

The best way to correct the Form I-9 is to line through the portions of the form that contain incorrect information (preferably in a contrasting ink color), then enter the correct information, initial and date your correction


Dealing with I-9 Forms can be tricky. It’s definitely not the easiest part of your day, and it requires a lot of attention to detail. No one even wants to talk about the possibility of getting audited for your I-9 forms. But what if I told you it was actually pretty simple? In this blog, I am going to list off the six steps you need to conduct your own internal Form I-9 audit. So if you ever hear ICE (Immigration and Customs Enforcement) knocking on your door, you’ll be ready!

Step One: Outline Your Procedure

When conducting your internal I-9 form audit start off by outlining your procedure and how you plan to conduct the audit. Your internal audit should concentrate on key problems that frequently arise during the completion of the I-9 form.

Conducting the Internal Audit – When preparing to conduct your internal audit be sure you account for the need of the following criteria:

  • Unbiased – Make sure the selection of Forms I-9 for an internal audit is not based on the employee’s race or nation origin. Either audit all forms, or audit a truly random sample of forms. An organization may not selectively choose which forms to audit.
  • Annual – This provides a defense against allegations of targeted internal Form I-9 auditing. Internal audit processes should mimic government compliance audit processes. This not only verifies Forms I-9 on file, but it also trains the Human Resources Department to prepare for actual government compliance audits.
  • Consistent – Either keep copies of all I-9 verification documents, or none of them. If your records are not complete, then you must either obtain the missing documents, or dispose of all collected verification documents.
  • Knowledgeable – Designate an “I-9 Officer” or Company Representative, responsible for knowing and applying Form I-9 rules. The authorized I-9 Officer should achieve the following:
    • Become well-versed on the correct completion of the Form I-9
    • Develop and enforce a compliant program
    • Create and implement internal training procedures
    • Conduct regular internal audits
    • Have a plan of action in the event of an ICE audit

Step Two: Auditing Section One of the I-9 Form

You’ll need to make sure you’re gathering all of the information below to complete step two, auditing Section One of the I-9 form.

Employee Information

  • Employee first and last names completed
  • Maiden name or other names if it is applicable; “N/A” for “Other Names Used” if it does not apply
  • Full address fields completed – No PO boxes allowed
  • Date of birth in mm/dd/yyyy format
  • Social Security Number (optional); Social Security Number mandatory for
  • E-Verify participants

Citizenship/Immigration Status

  • Status is selected (not more than one)
  • Lawful Permanent Resident – including alien registration number
  • If employee is not a permanent resident but has authorization to work in the United States, the alien number or admission number must be included and correctly stated
  • Expiration date of employment authorization is included and correctly stated

Employee Attestation

  • Employee’s signature
  • Date of employee’s execution of form
  • Form I-9 signed on the first day of employment or the period between the job being accepted by the employee and the first day of employment
  • Preparer/Translator Certification
  • Signature of preparer/translator if applicable
  • Name of preparer/translator correctly stated
  • Address of preparer/translator correctly stated

Step Three: Auditing Section Two of the I-9 Form

For Section Two of the I-9 form you’ll need to ensure one document from List A is included and completed or one document from List B and one from List C are listed and completed.

List A (Identity and Employment Authorization)

  • Appropriate document listed
  • List A document title correctly stated
  • List A document issuing authority correctly stated
  • List A document number correctly stated
  • List A document expiration date, if applicable, correctly stated
  • Receipt showing application for document accepted; awaiting original to be presented within 90 days

List B (Identity)

  • List B document title correctly stated
  • List B document issuing authority correctly stated
  • List B document number correctly stated
  • List B document expiration date, if applicable, correctly stated
  • Receipt showing application for document accepted; awaiting original to be presented within 90 days

List C (Employment Authorization)

  • Employee’s first day of employment correctly stated (mm/dd/yyyy)
  • Signature of Employer/Authorized Representative present and in correct box
  • Date of certification correctly stated (mm/dd/yyyy)
  • Certification signed by the third business day after the hire date
  • Title of Authorized Representative correctly stated
  • Last Name and First Name of Authorized Representative correctly stated
  • Employer’s Business or Organization Name correctly stated
  • Address of business correctly stated – No PO boxes allowed

Step Four: Auditing Section Three of the I-9 Form

When conducting your internal audit, Section Three of the I-9 form deals with reverification which only applies if evidence of employment authorization (List A or List C document) presented in Section two expires. Step four also covers what to do if you’re missing any I-9 forms.

  • Do not reverify: US Citizens and Noncitizen Nationals, or Lawful Permanent
  • Residents (I-551)
  • If employee listed an expiration date in Section 1, employment eligibility
  • reverified on or before expiration date
  • Date of rehire, if applicable (mm/dd/yyyy)
  • New name listed, if applicable
  • Document title correctly stated
  • Document number correctly stated
  • Employment authorization document expiration date (mm/dd/yyyy)
  • Signature of Authorized Representative present and correctly placed
  • Date of company certification (mm/dd/yyyy)
  • Printed name of Authorized Representative

Missing Forms I-9

For current employees – require employee to present documentation and complete a new Form I-9 with current dates. Date of hire will be the employee’s actual date of hire, which may have been years earlier. Attach a memo to the Form I-9 explaining the discrepancy between the date of hire and the date of completion of the Form I-9. Sign and date the memo.

For former employees – date and attach a memo to Forms I-9 for any terminated employees with missing or incorrect Form I-9 information. Retain it with other Forms I-9. Documenting this demonstrates an employer’s good faith effort to correct the forms by performing an internal self-audit.

Step Five: Addressing Form I-9 with Errors

Errors are bound to happen. Especially when you’re dealing with I-9 forms. But here’s what you do to ensure you keep on trucking!

Easily correctable – you may do so on the form. The best way to correct the Form I-9 is to line through the portions of the form that contain incorrect information (preferably in a contrasting ink color), then enter the correct information. Initial and date your correction. Never use white correction fluid. If you have previously made changes on Forms I-9 using white correction fluid instead, USCIS recommends that you attach a note to the corrected Forms I-9 explaining what happened. Be sure to sign and date the note.

Not easily correctable – complete a new Form I-9.

The old Form I-9 is attached to the new one, along with a note explaining the reason for creating a new Form I-9. Do not throw away the old form.

Step Six: Administrative Wrap Up

You’ve just completed conducting your internal I-9 Form! But you’re not completely done, yet. There are still a few administrative things you’ll need to wrap up.

Photocopies of List 2 documents – if they exist, are attached to the Form I-9 and are readable. It is not mandatory to make photocopies (except in Colorado), but if they are made, they must be kept. If photocopies are made for one employee, they must be made for all employees.

Employers enrolled in E-Verify must keep copies of the following documents if they are presented by the employee – US Passport or Passport Card, Permanent Resident Card (I-551), or Employment Authorization Card (I-766).

Manual Audit Log – The list of the Forms I-9 containing errors is completed. (This is the audit log that shows you have made a good faith effort to ensure Form I-9 compliance. The log should contain three columns: employee’s name, the errors, and the actions taken to rectify the errors.)

Why You Need To Do This, Right Now

Now you’re on your way to conducting a flawless Form I-9 internal audit. But why was this so important? Recently there has been an increase in enforcement for Form I-9 audits for employers. So what exactly changed?

On January 10, 2018, early morning reports of raids by Immigration and Customs Enforcement (ICE) confirmed what had been assumed – worksite enforcement has been increased and employers need to take note. The continued reports of high-profile ICE raids are definitely intentional. ICE wants employers to know that they’ve increased enforcement and they want you to take this very seriously. The current administration also appears to be building upon successful tactics that were used during both the Bush and Obama eras by focusing on administrative arrests of employees and requests for Forms I-9 through a Notice of Inspection (NOI) to employers. ICE conducted 1,279 audits of I-9 forms in 2016 and that number is expected to rise dramatically under the new enforcement focus.

Sure this can be scary, but knowing how to conduct your own internal I-9 form audits can help. And the word to remember for this process is “thorough.” An internal audit should include an in-depth review of all of an organization’s Forms I-9. Considering the limited resources and time of an organization, a comprehensive review of all I-9 records may not be feasible. In this case, organizations are encouraged to review a significant and fair sample of Forms I-9 to determine where the majority of errors/omissions occur, how to correct these, and how to implement better training and policies to ensure proper completion and compliance moving forward. For more information on self-auditing guidelines see the Department of Justice publication: Guidance for Employers Conducting Internal Employment Eligibility Verification Form I-9 Audits.

Let AZ HR Hub know how we can help your company.

What Are the Important HR Requirements for Small Business?

There are also some basic requirements you have to fulfill as a small business owner. When people come to work for you, it’s your responsibility to provide a safe and healthy workplace, to comply with relevant employment laws in your country, to keep good records, and to pay salaries and benefits promptly and effectively.

Small business team human resources

In this blog, we’ll dive into these topics and show you how to comply with these important human resource requirements in your small business. They may not be the most exciting things you’ll do in your small business, but they are critical if you want to have happy, productive employees—and avoid some organizational or legal headaches down the road.

Note: When you’re reading this blog, keep in mind that it’s aimed at a U.S. audience. Employment laws and other regulations vary widely depending on the country you’re based in—and sometimes there are local regulations to be aware of for your city, state, province, etc. So although we’re going to go through some general examples here, based on U.S. regulations, be sure to check your local situation, and ideally get professional legal advice to make sure you’re complying with all relevant laws in your area.

If you think occupational safety or “health & safety” regulations are just about annoying government red tape, here’s a shocking statistic for you: in the United States in 2015 alone, 4,836 employees died from injuries sustained in the workplace.

Let those numbers sink in for a while.

It should be clear, then, that your first and most important responsibility as a small business owner is to keep your employees safe. So in this first section, we’ll go through some basic principles of occupational safety.

Start by analyzing your workplace and the processes your employees have to follow. Look for potential dangers and make a comprehensive inventory.

Some workplaces are more obviously dangerous than others—the risks at a manufacturing site where workers handle toxic chemicals and heavy machinery are easier to see than those at an office, for example. But in any workplace, things can go wrong.

Every year in the U.S., for example, 27 people die and over 10,000 are injured by elevators. Thousands of people injure themselves, sometimes seriously, by tripping over loose wires, open desk drawers, objects left in passageways, and so on. Poorly designed workstations and office chairs can leave employees vulnerable to back pain, repetitive motion injuries, and other serious ailments. An old or badly maintained building can create any number of hazards, from faulty wiring to loose ceiling tiles.

So start by compiling a list of potential hazards. You may be able to have an experienced health and safety professional visit your workplace and conduct a free survey as part of a subsidized government program. Or you could pay for a private consultant to do it.

Encourage employees to alert you to anything they see in their jobs that is potentially unsafe—they are the best resource to help you compile the initial safety inventory and then keep it updated.

Once you’ve assessed the risks, try to eliminate as many hazards as you can, and where you can’t eliminate them, at least aim to control them and reduce their likelihood.

Usually this involves setting up particular procedures that every employee should follow (e.g. when you’re operating this machine, you must wear eye protection and check that the safety catch is functioning properly). Then make sure everyone knows the procedures, that they’re properly documented, and that signs or posters are in place to remind people.

Here are some other important steps:

  • Make a plan for regular maintenance of the building and of any equipment that employees use.
  • Have a plan for medical emergencies and post emergency numbers prominently.
  • Train some employees in first aid procedures and make sure people know who they are and how to reach them.
  • Have a procedure for reporting injuries and make sure people know it.
  • Train all employees in health and safety procedures to ensure they know what to do.
  • Create an emergency plan and conduct frequent drills.

Identifying the risks and putting controls in place is great, but what if your employees still don’t follow the right procedures? It’s critical that everyone takes workplace safety seriously, and you can set that tone by your own actions.

Demonstrating your commitment to employee workplace safety will encourage your staff to take the subject seriously too, and it may help avoid accidents. On top of that, it shows that you value them and their physical well-being, so it sends a powerful message that may improve their general happiness and job satisfaction.

So create a clear policy on workplace safety and health, and post it prominently around the office and on the intranet or company website. Hold meetings to communicate the policy in person, and hold managers and employees accountable for complying with it.

Keep reviewing and updating your policy and procedures regularly, encouraging input and suggestions from employees. And if you’re requiring people to do extra work to ensure procedures are followed, make sure they have the time and resources to do that effectively.

Following all of these steps will not immunize you from workplace accidents, but it will help reduce their likelihood and create a safer work environment for everyone.

Employment laws are a key part of small business human resource requirements and they can be very complex. These laws govern small businesses too, so you need to be up to speed and make sure you’re complying with all the regulations.

One of the most common forms of employment law deals with the issue of equal opportunity. Essentially, you should not discriminate in your hiring practices based on gender, race, religion, national origin, age, disability, etc. And you should have clear policies in place to guard against discrimination and harassment in the workplace. You may also be required to put up notices in the workplace to inform employees of their rights and your compliance with the relevant laws.

A few examples of the laws affecting this area in the U.S.:

  • Civil Rights Act
  • Equal Opportunity Employment Commission (EEOC) regulations
  • Uniformed Services Employment and Reemployment Rights Act
  • Equal Pay Act
  • Americans With Disabilities Act

Workers in many countries have the right to organize and bargain collectively or join a union. They often have the right to be paid overtime if they work extra hours, and to have a certain number of work breaks during the day.

There may be rules on how much vacation time or other benefits you have to provide—and if you provide paid vacation and employees don’t use it, you may have to pay them the monetary equivalent. And there are many more rights, both large and small, that workers have fought for over the years and had codified in law.

Sometimes there are exceptions—for example, in the U.S., salaried workers are generally exempt from the laws around overtime and work breaks, and independent contractors are exempt from many of the rules that apply to permanent employees. But you need to be careful about how you classify people, because there are rules about that too, and it’s easy to fall foul of them.

Also, don’t forget about things like parental leave and medical leave. You must allow employees to take time off according to the laws in your country, and make sure their job is still available for them when they return.

We covered the principles of workplace safety in the last section, but there may also be specific laws and regulations you need to comply with and posters you need to display in the workplace. So in addition to the work you do to provide a safe workplace, make sure you’re following all the relevant rules as well.

Filing is not the most exciting task you’ll ever do, but it’s important. The good news is that the requirements are quite simple—you just need to keep a file (or files, as we’ll see in a minute) for each employee, containing important information about their employment. And, most importantly, you’ll need to keep these files very secure, because they contain sensitive information.

Ideally, you’ll have two separate files for each employee: one for general employment information, and another for medical information.  Here’s what should go in each:

This file gathers all the information related to a particular employee in one place. You can start it when you hire them, by dropping in their resume and any hiring documents or forms they’ve signed.

Then you can add documents as you go along, such as:

  • training records
  • performance reviews
  • any disciplinary action
  • tax forms
  • payroll details
  • acknowledgement of receiving the employee handbook
  • other contracts or agreements the employee has signed

If an employee has a medical condition or disability that affects their work, you may need to keep medical records, but you should always keep them in a separate file in a very secure location.

That’s because medical information is very personal, and someone who may need to access the employee’s general file should not see their medical records. So keep this information in a separate file, and be very strict about who can access this file and why.

You need to keep proof of a worker’s eligibility to work in the U.S. This form is called Form I-9. Because immigration officials can ask to check these forms, you should keep them separate from the employee’s other information, so that you can just provide them to the government without giving access to all the employee’s personal data.

Another basic HR requirement for every small business is to pay people on time and provide any relevant benefits.

Small businesses often struggle with sufficient cash flow, but if you manage it carefully and make accurate forecasts, you can ensure you always have enough on hand. And if you need to delay any payments, employees’ salaries are not the ones to mess with. Paying someone late tells them that they’re not respected, and/or that the business is in serious trouble. Either way, it’s a sure way to get them updating their resume and looking for a new job.

But beyond that, you also need to make sure you calculate the right amount, make the correct tax deductions, keep and provide the right records, file the right forms with the tax authorities, and so on.

You also need to keep on top of benefits—give employees the right information and make it easy for them to access their benefits, and keep track of, for example, how many vacation days each person has taken out of their overall entitlement. Where benefits are provided by a third party, such as a health insurance company, you need to make sure that everybody is enrolled who should be enrolled, and that everything is running smoothly and people are able to access the help they need.

In this blog, you’ve seen how to comply with some important human resource requirements for your small business. You’ve learned how to keep your employees safe, how to keep on top of employment laws and regulations, how to keep good records, and how to provide pay and benefits efficiently.

AZ HR Hub is your HR partner so you can focus on your business.  Call us today for a free consultation.

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