One of these mistakes can cost you $10k+

One of the more complicated aspects of business are the employees you hire to manage tasks that you don’t have the time to do yourself. When you hire your first employee, you get access to skills that can compound your business’ effectiveness. However, you also face new rules and risks and must be sure to make sure you don’t make any of these expensive mistakes in your business:

1. Discrimination in the workplace. Annually, the EEOC investigates hundreds of claims of discrimination in the USA. I see a new report coming in every single week to my inbox of a new lawsuit. Lawsuits can easily be $85,000 or more when people discriminate at the workplace. It may not even be something you as a business mean to do: employees or managers that act improperly can sink the business.

2. Paying employees the wrong rate of pay. Per the Fair Labor Standards Act, each year there are federal minimum wage standards. However, many states mandate a higher minimum wage. Employers that don’t take care to pay a fair minimum wage will be liable for the difference when–not if–the mistake is discovered. In some states, this will be included with extra fees.

3. Not paying overtime. One of the most common wage errors comes from the belief that any salaried employee is exempt from overtime and minimum wage requirements. In order to be exempt, an employee’s job duties must fall within one of five categories: professional, executive, administrative, outside sales, or some computer technologies. The truth is: just because you give an employee a salary doesn’t mean they don’t receive overtime as well. If an employee fits into the “exempt” category, then have no fear, you can pay employees salary and not worry about the repercussions. However, if your salaried employee is “non-exempt,” and you haven’t been paying them for their hours of overtime, you are liable to pay up for all those missed hours.

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