Hiring Employees and Avoiding Legal Problems – Seven Minutes…

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Mistake no. 1 Failing to ensure that the employee knows he is employed at will.

Be careful about what you say orally or in writing when making a job offer. Statements you make about the nature of the position or long-term opportunities with the company may be construed as promises that the job is secure for a certain period of time, or that you will not fire the employee without good cause. To protect yourself, you can write an employment letter that states the position title, job start date, starting salary, reiterates the employee’s wishes for the position, and describes and limits how the relationship has changed. May go. Future. Changes in status should be made only after obtaining the signed consent of an important company official such as the President. I know it’s a hassle. If you’re not going to do this, at least ask the employee to fill out and sign an application for employment; You can buy them from office supply stores. Be sure there is a section in the application that notes that the employee is employed at-will.

Mistake no. 2 Define employment at will in your letter or employee handbook.

be careful. If you attempt to define employment at will, you may be giving the employee, his attorney, the labor commission, a judge or a jury an opportunity to guess about you. Generally, employees can be legally terminated without just cause if the employer has no illegal motivation for the termination. While the employee may consider this unfair, it is not actionable. Use the word only.

Mistake no. Engaging in discriminatory hiring practices.

do not do it. State and federal laws prohibit all but the smallest firms from discriminating on the basis of race, color, sex, religious beliefs, national origin, disability, or age. Anti-discrimination laws apply to all stages of the employment process: preparing job descriptions, writing advertisements, setting salaries, deciding who to hire, promotions and discipline. The laws only apply to employers who have more than a certain number of employees; The numbers differ for each anti-discrimination law.

Mistake no. Asking illegal questions in interview.

The US Equal Employment Opportunity Commission gives examples of questions employers may not ask on its website. Here is a partial list of common questions you may not ask an applicant: birthplace, age (in addition to asking whether the applicant is over 18), race, height, weight, gender, and whether you Are you married? The Americans with Disabilities Act prohibits pre-employment questions about disability. You can ask about the applicant’s ability to perform specific job functions. You may not inquire about the nature or severity of the disability, ask about medical treatment, or require an examination. After you’ve made a conditional offer and before the applicant begins work, you’re free to gather more details. Unless you require a medical exam or ask health questions for all candidates who receive a conditional offer in the job category.

Mistake no. Violating the right of privacy of any person.

Some people give incomplete information while applying for a post. It makes good business sense to do some background checks. If a person does not have the requisite experience or criminal record, you may have problems. Ask for only the information you need. Notify the applicant in writing if you will be requesting information from schools, credit reporting agencies, former employers, etc.

Mistake no. Violation of the Fair Credit Reporting Act.

A federal law enforces rules regarding obtaining and using consumer reports, credit reports and background checks. The rules regarding any report prepared by a consumer reporting agency, such as TransUnion, Equifax, would also cover a report prepared by a private detective. You must notify a person in writing before receiving the report. You need written permission from that person.

If you receive the report and you are going to take action against that person, such as not hiring them, you must first give that person a copy of the report and a summary of your rights under the Fair Credit Reporting Act which is available from the Federal Trade Commission website, or simply obtain one from the entity that prepared the report. After taking adverse action you should inform that person. You must do this in writing and provide the name, address and telephone number of the company preparing the report in the notification. State that the company preparing the report did not decide to take adverse action. State that the individual has the right to dispute the accuracy or completeness of the information presented. State that the person can obtain an additional free report from the credit agency upon request within 60 days.

Mistake no. 7 Failing to fill paper work.

Form I-9, IRS Form W-4, New Hire Report to State. Every employer has to fill out the form. Keep the copies with you and follow the relevant rules. If you are a new company, you must have an Employer Identification Number before you can hire any employees. To obtain one file Form SS-4. An employer must also register with the California EDD after paying more than $100 in gross wages to one or more employees in a calendar quarter. Registration forms can be ordered or downloaded from the EDD website.

Immigration laws prohibit employers from hiring foreigners who lack authorization to work in the United States. You and the employee must complete Form I-9 Employment Eligibility Verification. This one-page form is retained by the employer, and can be used to show that the employer followed the law and took necessary steps to determine that the employee was legally eligible to work in the United States. Was.

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