Hiring employees and avoiding legal trouble: 7 mistakes employers should avoid when hiring

ERROR NO. 1 Failing to ensure that the employee knows that he is employed at will.

Be careful what you say orally or in writing when you make a job offer. Statements you make about the nature of the position or long-term opportunities with the company may be interpreted as a promise that the job is safe for a certain period of time or that you will not terminate the employee without good cause. To protect yourself, you can write an employment letter that states the title of the position, the date the job starts, the starting salary, reiterates the employee’s at-will status, and explains and limits how the at-will relationship can be altered in the future. . The status should only be changeable by obtaining signed consent from a senior company official, such as the president. I know this is a nuisance. If you’re not going to, at least have the employee fill out and sign a job application; you can buy them at office supply stores. Make sure the application has a clause stating that the employee is employed at will.

ERROR NO. 2 Definition of at-will employment in your employee letter or handbook.

Be careful. If you try to define employment at will, you may give the employee, the employee’s attorney, the labor commission, a judge or jury a chance to guess. Generally, at will, employees can be legally terminated without cause if the employer does not have an unlawful motivation for the termination. While the employee may perceive this as unfair, it is not actionable. He only uses the term..

ERROR NO. 3 Engage in discriminatory hiring practices.

Do not do it. State and federal laws prohibit all but the smallest businesses from discriminating on the basis of race, color, sex, religious belief, national origin, disability, or age. Anti-discrimination laws apply to all stages of the employment process: preparing job descriptions, writing advertisements, paying wages, deciding who to hire, promotion, and disciplinary action. The laws apply only to employers who have more than a certain number of employees; the number differs for each anti-discrimination law.

ERROR NO. 4 Ask illegal questions in the interview.

The US Equal Employment Opportunity Commission lists sample questions employers cannot ask on its website. Here’s a partial list of general questions you can’t ask an applicant: place of birth, age (other than asking if the applicant is over 18), race, height, weight, gender, and is he married? The Americans with Disabilities Act prohibits pre-employment questions about a disability. You may ask about the applicant’s ability to perform specific job functions. You may not inquire about the nature or severity of a disability, inquire about medical treatment, or request an examination. After making a conditional offer and before an applicant starts working, you can collect more details. You can request a medical examination or ask health-related questions whenever you require for all candidates who receive conditional offers in the job category.

ERROR NO. 5 Violation of an individual’s privacy rights.

Some people give incomplete information when applying for a position. It makes business sense to do some background research. If a person lacks the required experience or a criminal record, he may have a problem. Find only the information you need. Inform the applicant in writing if he or she will request information from schools, credit reporting agencies, training employers, etc.

ERROR NO. 6 Violation of the Fair Credit Reporting Act.

A federal law imposes rules regarding the collection and use of consumer reports, credit reports, and background checks. The rules relate to any report prepared by a consumer reporting agency like TransUnion, Equifax would also be covered by a report prepared by a private detective. You must notify a person in writing before you get the report. You need the person’s written permission.

If you receive the report and you are going to take an action adverse to the person, such as not hiring them, you must first give the person a copy of the report and a copy of A Summary of Your Rights Under the Fair Credit Reporting Act, which is available on the Federal Trade Commission website, or simply obtain one from the entity that prepared the report. After you have taken the contrary action, you must notify the person. You must do so in writing, and the notice must give the name, address, and telephone number of the business that made the report. State that the company that prepared the report did not make the decision to take the adverse action. State that the person has the right to dispute the accuracy or completeness of the information provided. State that the person can get an additional free report from the credit bureau if they request it within 60 days.

ERROR NO. 7 Not completing paperwork.

Form I-9, IRS Form W-4, Report New Hires to the State. Every employer must fill out the forms. Keep copies and comply with relevant regulations. If you are a new company, before hiring any employee you must have an employer identification number. To obtain a file form SS-4. An employer must also register with the California EDD after paying more than $100 in total wages to one or more employees in a calendar quarter. Registration forms can be ordered on the EDD website or downloaded.

Immigration laws prohibit employers from hiring aliens who do not have authorization to work in the United States. You and the employee must complete Form I-9 Employment Eligibility Verification. This one-page form is kept by the employer and can be used to show that the employer complied with the law and took steps to determine that the employee was legally eligible to work in the United States.