No-no’s cause lawsuits

When it comes to personnel policies, even the best of intentions can sometimes leave employers vulnerable to a lawsuit.

Here are some of the practices that employers have ended up regretting. The list is courtesy of the California Chamber of Commerce.

Pay everyone a salary to avoid calculating overtime. While a nonexempt employee legally can be paid in the form of a "salary," that employee earns overtime the same as hourly wage earners.

Establish a use-it-or-lose-it vacation policy. Many employers are unaware that use-it-or-lose-it vacation policies are illegal in California. According to the California Supreme Court, vacation is a vested benefit that can’t be taken away once it’s earned.

Hold a final paycheck until all company equipment is returned. Failure to meet a final paycheck deadline subjects an employer to waiting time penalties.

Get rid of anyone who files a workers’ compensation claim. California’s Labor Code section 132(a) prohibits an employer from terminating, threatening to terminate or discriminating in any way against an employee who has filed or even intends to file a workers’ compensation claim.

Fail to train front-line managers about labor laws. Well-trained front-line managers are an employer’s best defense against being sued.

Require all employees to speak only English in the workplace. California forbids the establishment of "English only" rules except to the extent an employer can prove it a business necessity.

Avoid legal and tax hassles by making everyone an independent contractor. The consequences for misclassifying an employee as an independent contractor can be significant tax, wage and benefits liabilities, as well as massive fines that may be imposed by state and federal agencies.

The best way to make sure your company’s actions don’t become one of the top things employers do to get sued is to become an informed employer.

The California Chamber of Commerce is a nonprofit organization that provides California employers with products and services designed to assist with California and federal compliances. It also serves as an advocate for California business by lobbying the state legislature.

To learn more, visit the website at www.calchamber.com.

Story provided by North American Precis Syndicate, Inc.

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