Consequences of Operating Without a Competent HR Function
Employment
Discriminatory Hiring Practices (ads, screening, interviewing, selection)
Fines, Penalties, and Lawsuits (Title VII, Equal Pay Act, Age Discrimination in Employment Act, Title I and Title V of ADA, WLAD)
Out-of-date Employment Application
Fines, Penalties, and INS Violations (Title VII, Equal Pay Act, Age Discrimination in Employment Act, Title I and Title V of ADA, WLAD)
No Interview Skills Training
Increased Chance of Employee Lawsuits for Discriminatory Hiring (Washington Human Rights Commission Enforcement & Violation of Federal & State Laws.)
No Structured New Employee Orientation
Confusion, High Turnover, Incorrect Paperwork
No New Employee Reference Checks
Negligent Hiring, Fines, Lawsuits, and Turnover Due to Poor Hiring Decisions
Violation of Drug Testing Requirements
Fines and Penalties (ADA, DOT Regulations)
Group Benefits
Inconsistent Plan Administration
Fines, Penalties, Lawsuits, and Disgruntled Employees (Discrimination, ERISA)
Benefits Paperwork Error
Fines, Penalties, Employee Lawsuits, COBRA Violations (COBRA, HIPAA)
SPDs Not Distributed and Maintained
Fines (ERISA)
Cost Comparison and Poor Plan Design
Inadequate and/or Costly Coverage
HR Administration
Poor Documentation (I-9’s etc.) in Employee Files; Improper Disposal of Records
Fines, Penalties, Lawsuits, Evidence of Discriminatory Practices (Federal and State Discrimination Laws – IRCA, IIRIRA, RCW 19.215)
No EE0-1 Annual Report
Fines, Penalties (Equal Employment Opportunity Act of 1972)
No Affirmative Action Plans
Fines, Penalties, Loss of Government Contracts – Prime and Subcontractors (41CFR)
Improper Administration of Employee Leaves and Lack of Accommodations for Disabilities
Fines, Penalties (FMLA, USERRA, Washington Family Care Act, ADA, Workers’ Compensation, Maternity Leave, Jury Leave, Public Contract Laws such as EO 11246; VEVRAA; Rehabilitation Act)
No Employment Posters
Fines, Penalties
Out-of-Date Policies/Procedures/Handbook
Unintended Contract Formation Limiting Employment “At Will”; Inconsistent Policy Administration
Poor Workers’ Compensation Administration
Fines, Penalties, Lawsuits, and Increased Experience Ratings
Poor Unemployment Insurance Administration
Fines, Penalties, Lawsuits, and Increased Experience Ratings
No Review of Terminations
Fines, Penalties, Lawsuits (Title VII, Equal Pay Act, Age Discrimination in Employment Act, Title I and V of ADA, WLAD, State Tort Laws)
No Review of Layoffs/RIFs
Fines, Penalties, Lawsuits (WARN Act, Age Discrimination in Employment Act, COBRA, ERISA, FMLA, OWBPA, NLRA, State Tort Laws, WLAD)
No Employee Performance Documentation
Unlawful Termination Lawsuits; Lack of Employee Development; No Basis for Compensation, Performance, Retention Decisions, (ADEA, State Tort Laws, WLAD)
Training
No Annual Harassment/Retaliation Training
Increased Chance of Harassment or Retaliation Claims; Loss of Affirmative Defense Under Ellerth; Potential Individual Liability for Managers
No Interview Skills Training
Increased Chance of Discrimination Claims (Federal and State Discrimination Laws)
No Supervisory Training
Increased Chance of Lawsuits; Increase in Employee Turnover; Poor Morale and Productivity; Untrained Supervisors
Wage and Hour
No Minor Work Permit
Fines and Penalties
Poor Exempt/Non-Exempt Classification; Improper Independent Contractor Classification
Officer or Agent Individual Liability; Class Actions, Back Pay Penalties and Employee Lawsuits (FLSA, Washington Minimum Wage Act)
Poor Record Maintenance
Fines and Penalties (FLSA, Washington Minimum Wage Act, Washington Privacy Act)
No Compensation Plan
Increased Chance for Employee Lawsuits
Poor Compensatory Time Policies
Back Pay, Lawsuits (FLSA, Washington Minimum Wage Act)
Poor Practices Regarding Rest Breaks and Lunch Breaks
Fines and Penalties (Washington Minimum Wage Act)
Employee Investigation
Improper or Ill-timed Employee Investigations
Increased Chance of Lawsuits, EEOC Investigations/Fines, Violation of EEOC Investigation Guidelines, Violation of State and Federal Discrimination/Harassment
Safety
No Accident Prevention Plan
Fines, Penalties, and Lawsuits (WISHA and OSHA Violations)
No CPR-Trained Employees
Fines, Penalties, and Lawsuits (WISHA and OSHA Violations)
No MSDS Sheets
Fines, Penalties, and Lawsuits (WISHA and OSHA Violations)
No First Aid Training and Equipment
Fines, Penalties, and Lawsuits (WISHA and OSHA Violations)
No OSHA 300 Posting and OSHA 100 Maintenance
Fines, Penalties, and Lawsuits (WISHA and OSHA Violations)
Unsafe Workplace
Fine, Penalties and Lawsuits (Management May Have Personal Liability If Negligent; Increased Workers’ Compensation Claims and Increased Costs to Employer)